In FY21, Dream11 posts Rs 327 Cr profit; revenue grows by 53%
- ByStartupStory | April 6, 2022
As per a recent report by the Federation of Indian Fantasy Sports in partnership with Deloitte, the Indian fantasy sports market is on its way to becoming an international behemoth, estimated to grow from $4.6 billion in FY21 to over $22 billion by FY25. Dream11, one of the oldest Indian fantasy sports companies, even as it enjoys its status as the poster boy of the fantasy sports industry, has been leading the charge.
The company has also been leading the segment in terms of business and managed to grow its profit by over 3X, besides its valuation ($8 billion). According to the company’s annual financial statements filed with RoC, during the fiscal ended in March 2021, Dream11’s revenue from operations grew by 53% to Rs 2,554.4 crore ($340 million) as compared to Rs 1,670.2 crore earned in FY20.
Over twelve crore users presence has been claimed by the Tiger Global-backed unicorn on its platform. Reaching 5 million daily active users by mid FY21, this, even when the application is not available on the Google Play store.
By charging platform fees from its users participating in fantasy sports contests which it recognises as Gross Gaming Revenue (excluding GST), the 13-year-old company generated its revenues primarily. During FY21, from gaming Dream11 earned 99.5% of its revenues which amounted to Rs 2,451.2 crore for which it awarded promotional credits to its users worth Rs 500.21 crore.
Dream11 has tried to diversify with other operating segments including bespoke sports travel, merchandising, video game development, and content creation, while fantasy gaming remains the mainstay of its collections. Dream11 sold worth Rs 1.2 crore sports jerseys and related merchandise whereas from its travel vertical DreamSet Go another Rs 1.2 crore came in. From subscriptions it also generated Rs 8.24 crore and from its financial assets Rs 154.03 crore during FY21.
For Rs 222 crore which helped to propel its adoption amongst cricket fans in India, Dream11 became the title sponsor for the Indian Premier League in 2020. Accounting for 57% of its annual costs, as a result customer acquisition is the largest cost centre of the company. During FY21, expenses of advertisement and promotion grew by 35% from Rs 927.82 crore spent in FY20 to Rs 1,249.2 crore.
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