Dream11 pivots to sports entertainment, targets watch party experiences

Hit by the real-money gaming ban, Dream11 has changed its strategy to become a sports entertainment platform. The company, with more than 250 million registered users on its platform, expects to capture a significant portion of the ‘watch party’ experience, or people watching streaming content, which India is likely to see explode in the sports segment, the founders told the media at an event.

“We feel there is huge potential to build a ‘Twitch’ kind of global platform out of India in the sports segment,” Harsh Jain, co-founder and chief executive officer (CEO), Dream11 and Dream Sports, said. In 2014, Twitch, a streaming platform, was picked up by Amazon for $970 million in an all-cash deal.

According to Jain, the total addressable market (TAM), a metric used by startups to understand the growth potential of a segment, is estimated to be $10 billion in terms of revenue. Globally, there are more than a billion sports enthusiasts that can be targeted, he said. Calling it a proven playbook, Jain said the company is spreading its bets and trying to bring something that adds value to the ecosystem.

The app will allow users over the age of 18 to watch and interact with their favourite influencers during a live match. While the usage of the platform is free for all, Dream11 plans to monetise the experience through in-built ads, paid shoutouts, interaction with influencers, and an ad-free version, Jain said. According to him, the platform has been built with the aim of creating richer and more immersive sports experiences to complement live sports broadcasts.

It will initially target smaller sums, such as ₹3-10 per user per shout-out or engagement. A large portion of this revenue will be allocated to the influencers, while the company will retain a small platform fee, Jain explained.

The 2025 ban on real-money online gaming had a severe impact on Dream11's business, resulting in a nearly 95% loss in revenue overnight and forcing the company to shut down its paid contests. In response, Dream11 said it would focus on a free-to-play, ad-supported model.

The company has also since entered the fintech business with Dream Money, which will offer a wealth management service targeting a new generation of investors. Mint reported the company’s intent to enter the broking business on 28 October.

The company, backed by marquee investors such as Tencent, Steadview Capital, Tiger Global, TPG, ChrysCapital, TCV, and Alpha Wave Global, among others, was last valued at $8 billion. The company, which generated around ₹6,384 crore in revenues and ₹188 crore in profits as on 31 March 2023, has suffered a significant decline in revenues following the ban.

“We have repurposed our employee base of 1,000 people to some of the emerging businesses we have under the group. While Dream Sports will have 200 people, the remaining 800 have been reallocated to other businesses,” Jain added. The parent has businesses such as Dream Sports AI, Dream Set Go, Dream Cricket, Dream Money, and Dream Sports Foundation, among others.

“A business is built on retention and not just adoption. Both retention of users and employees is equally important,” Jain said. The company stated that it is allowing employees to walk out without penalty for breaching their contracts and has assured that there will be no layoffs in the engineering team. “We will cut costs on operating expenses, such as shifting to a cheaper office, but we do not plan to reduce the engineering team,” Jain added.

Founded by Jain and Bhavit Seth, Dream Sports is not looking to raise any follow-on capital and will fund this pivot from internal accruals. As for the other businesses under the group, they will have their own independent growth trajectories and explore fund raises as needed, Jain said. “We want each business to run independently, and hence if there is a need to externalise them and raise capital, it will be done,” he added.