There was a general lack of vision regarding Dream11’s potential when the platform first went live. Compared to just 2 million in 2016, Dream 11 now has over 100 million registered users. The consistent financing, sponsorship partnerships with cricketers, excellent marketing campaigns, and prize money are only a few of the reasons for this phenomenal success. This post will examine Dream 11’s business model and how it generates revenue through its various revenue streams in detail.
About Dream11
Dream11 is an indigenous Indian brand that facilitates interaction and the display of expertise among Indian sports lovers. Using real-life players from upcoming matches, fans may assemble their teams, compete with one another, and earn points depending on how well their players perform on the pitch. Dream Sports is an umbrella brand that includes Dream11, FanCode, DreamX, and DreamSetGo, among others. Dream11 also holds the distinction of being the first fantasy sports platform ever to become a “Guinness World Record”. It was founded in 2008 by Bhavit Sheth and Harsh Jain. The company, which has its headquarters in Mumbai, joined the Unicorn Club in April 2019. In addition to being the primary sponsor of the Indian cricket team at the moment, it was the title sponsor of the 2020 Indian Premier League.
A premium business model allows Dream11 to draw in a big user base and make money through premium services. Dream11 is a sports startup that lets fans showcase their passion and knowledge by creating fantasy teams for real-life matches. Users pick players from an upcoming game to form their ideal team and compete with others on the app. Points are awarded based on real-time player performance. The user with the highest points wins the largest share of the prize money. To join a contest, users pay a fixed entry fee, and only a limited number of participants are allowed per league.
The net profit for Dream11 in FY23 was INR 187.8 crore, up 32% from the previous year. Its business strategy is structured such that it earns money from the joining fees of the contests, which users must pay to take part in paid public or private contests. Turning free users into paying clients can be quite tough and resource-intensive. A lot of people still favor Dream11, even though other websites provide cheaper commissions or don’t charge anything for private competitions (like HalaPlay or MyTeam11). This preference is largely due to its ability to create personalized competitions, which is particularly useful when playing with friends or creating your cricket team.
Dream11 makes money through various streams. Although, Ad networks, such as Google Adsense, do not contribute to Dream11’s earnings. Its revenue streams are discussed below:
Affordable Starting Prices: To fund its platform, Dream11 collects entrance fees from users who wish to take part in sponsored contests.
Earning Commission: When users win prizes based on the real-time performance of the players they select, Dream11 takes a cut of the overall prize pool in addition to the entry fee. This commission, which, as of December 2023, typically amounts to 15% to 20% of the total prize pool, boosts their total earnings. Half of the players in a Dream11 tournament can receive cash awards; the top finishers get the largest share, while the bottom finishers get a smaller portion. Dream11 offers a 50% chance of winning, unlike a lottery. When users have a better chance of winning, they are more likely to participate.
Minimum Withdrawal: A minimum withdrawal quantity of Rs 200 is required. Dream11 has come up with yet another innovative method to keep users coming back. The reason is that you’ll keep trying to play contests till your balance reaches Rs 200.
Platform Fee: Not all of the money that was collected from entries is given out when a contest ends. A portion of this goes to Dream11’s ‘platform fee’ (15%) and the balance goes to the winners.
Dream11 Financials
Dream11 Financials
FY22
FY23
Operating Revenue
INR 3841 crore
INR 6384 crore
Total Expenses
INR 3762 crore
INR 5839 crore
Profit/Loss
Profit of INR 142 crore
Profit of INR 188 crore
Dream11 Financials
In FY22, Dream11 reported an operating revenue of INR 3841 crore, with total expenses amounting to INR 3762 crore, resulting in a profit of INR 142 crore. The financial performance improved in FY23, with operating revenue increasing to INR 6384 crore and total expenses rising to INR 5839 crore. This growth led to a higher profit of INR 188 crore for the year.
USP of Dream11
Dream11 has developed a highly effective marketing strategy, thanks to its data-driven culture and the insights it has gained. Its organic traffic accounts for more than 30% of its total users. The company’s digital marketing and referral programs, combined with its powerful media efforts, have successfully captivated the Indian masses and made fantasy sports a phenomenon in the country.
Dream11 SWOT Analysis
SWOT Analysis of Dream11
Dream11 Strength
The company’s rapid rise to fame and the endorsements of numerous renowned individuals make its expansion easy to track.
Dream11 can experiment with numerous things to increase its growth further because it is one of the leaders in its area.
Dream11 has encouraged people to think about money, make decisions based on facts, and analyze sports.
Dream11 Weakness
Problems with operations.
In the big leagues, the platform costs are too unreasonable, exceeding 25% per contest.
Its technology needs an upgrade.
Dream11 Opportunities
Dream11 is benefiting from the growing popularity of online gaming.
Additionally, the company’s business is expanding as new leagues and tournaments are being organized regularly.
Dream11 Threats
Many individuals still see it as more of a gambling app than a gaming app.
Dream11 has suffered a significant setback as a result of its removal from the Play Store.
Conclusion
Over the past ten years, fantasy sports have seen a tremendous transformation. There is a staggering rate of new apps appearing. This has led to a leveling-off of competition in the fantasy game market. However, to inject some freshness, innovation is required.
Nowadays, Dream11’s competitors all use the same point system and UI, which turns off a lot of players on the first try because they’re always looking for something new. Dream11 has developed and grown rapidly, even though formidable competitors have emerged. With the increasing commercialization of sports, Dream11’s future is bright.
FAQs
What is Dream11 about?
Dream11 is an Indian fantasy sports platform where users can play fantasy cricket, hockey, football, kabaddi, handball, basketball, volleyball, rugby, futsal, American football, and baseball. In April 2019, Dream11 made history as the first Indian fantasy sports company to achieve unicorn status.
Does Dream11 work outside India?
You can participate in leagues on Dream11 after registering, but all transactions must be conducted in INR through Indian banks.
Who founded Dream11?
Bhavit Sheth and Harsh Jain founded Dream11 in 2008.
How does Dream11 work?
Dream11 lets users create fantasy teams using real-life players for upcoming matches. Based on how those players perform in the actual game, users earn points. The user with the highest points wins. To play, users join paid contests with a fixed entry fee and compete against others.
How to play Dream11 and earn money?
Select a Match – Choose an upcoming cricket, football, or other sports match.
Create Your Team – Pick real players from both teams within a set budget.
Join a Contest – Enter paid contests by paying a fixed entry fee.
Earn Points – Your team earns points based on how your selected players perform in the real match.
Win Cash – If your team scores high, you win a share of the prize money.
Fantasy sports is what most young sports lovers today are crazy about. With fantasy sports, sports lovers need not just to enjoy a game by being a spectator, but can also create an imaginary team (of real players) of their own choice and earn rewards when this imaginary team performs well.
Thanks to the mobile and internet revolution, the fantasy gaming industry is booming in India too. With a motivated will to explore this sector, Dream11 was founded back in 2008 by two young and talented co-founders Harsh Jain and Bhavit Sheth.
A pioneer in the fantasy gaming segment, Dream11 is the first Indian gaming company to enter the unicorn club. Let’s have a look at the journey of this Mumbai-based startup that has been recognized as one of the top 10 innovative companies in India.
Know the Dream11 Success Story, Founders, History, Business Model, Funding, Revenue Model, and more here with StartupTalky.
Dream11 is an application that allows its users to create imaginary teams. The catch here is that the users can earn cash based on the actual match performance of the selected players on their teams. Each good move by the players earns cash rewards for the users. Moreover, Dream11 allows its users to play games in categories like cricket, football, kabaddi, and the National Basketball Association.
Dream11 – Parent Company – Dream Sports
Dream11 – Parent Company – DreamSports
Dream Sports is a sports technology company whose portfolio includes brands including Dream11, FanCode, DreamX, DreamSetGo, and Dream Pay. Dream Sports is putting the vision of ‘Make Sports Better’ into action by offering a variety of ways for fans to connect deeply with the sports they love, including fantasy sports, material, commerce, experiences, and events.
Harsh Jain and Bhavit Sheth founded the company in 2008, and it was ranked #10 among India’s Great Mid-Size Workplaces in 2019. It was also named one of Fast Company’s top 10 innovative companies in India in 2019. Dream Sports’ major investors include Kalaari Capital, Think Investments, Multiples Equity, Tencent, and Steadview Capital.
Dream11: Sign Up
Dream11 sign-up is an easy process. However, if you are confused regarding the registration process of the Dream11 app, then here’s a set of 3 quick steps that you can follow to sign up for Dream11 easily:
First, you need to download the Dream11 app on your mobile devices.
Next, you need to register on the app with your mobile number and then the OTP.
Finally, you can select your match and start playing.
India’s gaming market is expected to generate US$10,060 million in revenue by 2025, with a projected CAGR of 10.08% (2025-2029), reaching US$14,770 million by 2029.
This upward trend highlights the growing prominence and importance of the gaming business in India, which is being driven by a number of factors, including the population’s growing interest in gaming, expanding smartphone penetration, and more internet accessibility.
Dream11 – Founders and Team
Dream11 company was founded in 2008 by two young and aspiring entrepreneurs and sports lovers, Harsh Jain and Bhavit Sheth.
Harsh Jain (Co-Founder and Chief Enforcement Officer), Bhavit Sheth (Co-Founder and COO), Co-Founder of Dream11
Harsh Jain (Co-Founder and CEO, Dream11)
Harsh Jain is the CEO (Chief Enforcement Officer) and Co-Founder of Dream11. He is a graduate of the University of Pennsylvania with an MBA from Columbia Business School. Before Dream11, he launched and successfully led the acquisition of Red Digital (a social media agency) by Gozoop. His vision with Dream11 is to entertain sports fans with some real-time modules. Harsh Jain is currently hailed as the President of the Federation of Indian Fantasy Sports, along with being the Cultural Enforcement Officer (CEO) and Co-founder of Dream11.
The Dream11 Co-Founder is also recognized as the son of Anand Jain, an experienced businessman of enormous repute who is the Chairman of Jai Corp Limited, Urban Infrastructure Venture Capital Limited, and is often considered the third son of Dhirubhai Ambani. Anand Jain, the father of Harsh Jain, has been closely associated with the Reliance Group and was even featured at No. 11 in the Forbes’ List of India’s 40 Richest in 2007.
Bhavit Sheth is theCOO and Co-Founder of Dream11. He is an Engineer with an MBA from Bentley University (Boston) and a Diploma in E-commerce strategies from Harvard. Bhavit co-founded Dream11 with Harsh in 2008 and also stands as the COO of the company. As COO, Sheth’s prime focus is on providing the best, trusted, and user-focused experience via operational excellence throughout the company’s processes. Sheth was also the Co-founder of Red Digital along with Harsh, which was later on by Gozoop. He was previously a Financial Research Intern at Bilav Information Services LLP, and before that, Bhavit served as a Quality Assurance Intern at Godrej & Boyce Mfg. Co. Ltd.
The company has 501–1,000 employees, as per LinkedIn.
Dream11 – Startup Story
Harsh Jain and Bhavit Sheth, childhood sports enthusiasts, co-founded Dream11, the most well-known fantasy sports application. The Indian Premier League (IPL) was the catalyst for the new fantasy sports industry to emerge. In a country with billions of cricket fans, Harsh and Bhavit created the company with the belief that sports fantasy leagues would become a profitable service opportunity.
Harsh finished his studies at the University of Pennsylvania and Columbia Business School and returned to India to solve a fantasy game problem. He invited others to join him in finding a faster solution to the problem. Many laughed at him, but Harsh’s college classmate Bhavit Sheth decided to join him for a larger party.
Dream11 has various products and services; some of the prominent ones are:
Fancode
DreamX announced the introduction of Fancode, an ad-free multi-sport aggregator platform that will include content, commerce (sports products), and community involvement in April 2019.
DreamX
The parent company of Dream11, Dream Sports, has entered the finance market with the release of DreamX, a mobile payments app that was launched in April 2023.
Dream11 – Business Model
Dream11 company operates on a freemium model, providing users with both free and premium options. Users can choose to enter free-to-play fantasy sports leagues and win smaller rewards, or they can pay to enter contests with bigger payouts. Dream11’s business approach enables it to serve a diverse user base and generate income through paid contest entries. Dream11 increases user engagement and improves monetization opportunities within the fantasy sports platform by providing a combination of free and premium offerings.
Dream11 – Revenue Model
Dream11 makes revenue from different sources. Some of the prominent ones are:
Sale of Goods
The exchange of tangible things for monetary value through the sale of goods creates income and propels the financial expansion of the organization.
Platform Fee Revenue
Dream11 makes money by keeping 15% of the entry fees that are obtained from contests held on its platform as a platform charge.
Being India’s number one online gaming platform did not come without hurdles. First of them was the legal challenge, particularly because of its similarity to gambling, which is largely illegal in India. This made the company go through court allegations, but the judiciary ruled that fantasy gaming is a game of skills rather than chances or probabilities. The industry, though growing at an ever-increasing speed, is in a self-regulatory phase.
It didn’t have a lot of money at first. Dream11 began its fantasy sports business with only a few thousand dollars, but it quickly expanded and required a series of angel investor investments. The amount of money needed to run the company was extremely high. But, thanks to their negotiating abilities, they were able to find some decent investment opportunities and are almost done.
A few challenges it found were:
Getting through legal obstacles
Locating a business market
Marketing the company
Fixing the office location
Planning and implementing the appropriate technologies
On October 5, 2023, Dream11 acquired Sixer for an unknown amount. This calculated action is to strengthen Dream11’s standing in the fantasy sports industry by utilizing Sixer’s creative methodology and user-engagement tactics. Dream11 hopes to improve its services and bolster its position as the market leader with this acquisition.
Dream11 – Growth
Dream11 growth highlights are:
Dream11 has 15.01 million concurrent users, as per a news report from March 2024
The company had 220 million+ users as of March 2024
It has 2,50,00,000+ registered users as of March 2024
It has streamlined 40,000+ hours of live content as of March 2024
The company has 29 sports brands as partners as of March 2024
Dream11 – Financials
Dream11 has demonstrated significant growth over the past few years, with notable increases in revenue and profitability. Below is a summary of the company’s financial performance from FY20 to FY23:
Financial Metric
FY23
FY22
FY21
Revenue
INR 6,580.8 crore
INR 4,065 crore
INR 2,708.4 crore
Expenses
INR 5,838.7 crore
INR 3,762.4 crore
INR 2,210.3 crore
Profit/Loss (before tax)
INR 742.1 crore
INR 302.6 crore
INR 498.1 crore
Dream11 Financials
Dream11 Revenue
Revenue Stream
FY23
FY22
Revenue from Operations
INR 6,384.5 crore
INR 3,840.8 crore
Other Income
INR 196.3 crore
INR 224.3 crore
Total Revenue
INR 6,580.8 crore
INR 4,065 crore
Revenue from operations surged in FY23 compared to FY22, with a minor dip in other income.
Dream11 Expenses
Expenses
FY23
FY22
Purchases of stock-in-trade
INR 9.9 crore
INR 0.5 crore
Changes in inventories
INR 2.1 crore
INR 0.7 crore
Employee benefit expense
INR 1,154.2 crore
INR 496.5 crore
Finance costs
INR 12.8 crore
INR 4.9 crore
Amortization & Depreciation
INR 89.7 crore
INR 40.3 crore
Other expenses
INR 4,574.3 crore
INR 3,219.5 crore
Quick Summary:
Revenue Growth: Dream11 achieved a strong increase in revenue from FY22 to FY23, demonstrating market expansion.
Profitability: The company saw a significant rise in profitability despite increased expenses.
Expense Management: Dream11’s expenses saw a significant increase in FY23 compared to FY22, driven by higher employee costs, increased operational spending, and rising depreciation expenses.
Dream11 has partnered with various companies; some of the prominent ones are:
Antigua and Barbuda Cricket Association (ABCA)
To stream the local organization’s T10 cricket event, the Antigua and Barbuda Cricket Association (ABCA) has teamed with India-based fantasy sports platform Dream 11 in January 2023.
Legends League Cricket
Dream 11 has partnered with LLC in March 2023. Dream 11, with this partnership, will reach as many cricket lovers as possible. Legends League Cricket will receive a huge boost from Dream 11.
WPL Mumbai Indians (MI)
Dream11 disclosed a partnership with the Mumbai Indians (MI), a WPL team, in March 2023. Vikrant Mudaliar, Chief Marketing Officer of Dream Sports, commented on the cooperation, saying that “marquee women-centric leagues like WPL will accelerate the growth of women’s cricket.”
Dream11 – Advertisements and Social Media Campaigns
Dream 11 prominent campaigns are:
Dream11 Campaign
SabKhelenge Campaign
Aamir Khan, R Madhavan, and Sharman Joshi, the illustrious ensemble of the blockbuster Hindi film 3 Idiots, are Dream11’s new ambassadors for their “Sab Khelenge” campaign which was released in April, 2023.
Dream11 – Awards and Recognitions
Dream11 has won several awards. Some of the prominent ones are:
Dream11 won the prestigious Red Herring Global 100 Award conducted by Red Herring on January 25, 2013.
According to a report by Google, Dream11 was named among the top 10 biggest and most popular trends of 2018 in India.
In 2019, BCCI signed up Dream11 as IPL’s official fantasy sports partner until 2022. This was not only validation for Dream11, but for the whole fantasy gaming sector in the country.
In 2018, Dream11 was ranked #9 among India’s Great Mid-Size Workplaces.
In Inc42’s 42Next list, Dream11 was one of 42 innovative startups.
Harsh Jain stated at the Startup Mahakumbh event in New Delhi that the company has no plans to expand globally. He explained that India, with one-sixth of the world’s population, offers a unique advantage, making global expansion unnecessary. Dream11, along with Games24x7 and Mobile Premier League, is one of India’s three gaming unicorns, each valued at over $1 billion.
“We are the country with the largest young population. We have tailwinds of a government that is pushing technology forward more than ever before. We must take advantage of this amazing opportunity,” he said.
FAQs
What is Dream11 app?
The Dream11 app is a fantasy gaming app created by Dream11, which is founded on January 1, 2008, by Bhavit Sheth and Harsh Jain and is currently hailed as one of India’s leading players in fantasy sports industry that boasts of 15 crore+ users.
Who is Dream11 founder?
Dream11 was co-founded by Harsh Jain and Bhavit Sheth in 2008.
Who is Dream11 owner?
According to sources, the majority of Dream11 stakes are still held by its founders, who are, therefore, the owner of Dream11. Dream Sports is the parent company of Dream11. Dream Sports is a sports technology company whose portfolio includes brands including Dream11, FanCode, DreamX, DreamSetGo, and Dream Pay.
What is the Dream11 location?
The famous fantasy sports company has its headquarters in Mumbai, Maharashtra, India.
What is Dream11 launch date?
Dream11 start date was in the year 2008.
How much is the Dream11 funding?
Dream11 has raised $1.6 billion in 8 rounds of funding to date.
Who are the Top Competitors of Dream11?
With Dream11 being number one in the industry there are close to 60 other online gaming platforms operating in the same genre. Some of them include FanMojo, Mobile Premier League, Ballebaaz, HalaPlay, Gaming Monk, etc.
How much is the revenue of Dream11?
Dream11 reported revenue of Rs 6,384 crore in FY23.
What is Dream11 business model?
Dream11 operates on a freemium fantasy sports model, where users create virtual teams and participate in paid and free contests. It earns revenue through entry fees, while distributing winnings to users. The platform also generates income from advertising and partnerships with sports leagues.
Is Dream11 a Chinese app?
Dream11 is an Indian fantasy sports platform. Tencent, A Chinese Conglomerate has a 10% stake in Dream11 as of September, 2020.
Is Dream11 legal and safe?
Yes, millions of people are playing paid leagues on Dream11. It is absolutely safe and legal way to earn money. Dream11 is the largest fantasy website in India having more than 1.1 crore players.
What is Dream 11 revenue model?
Dream11’s revenue model is based on contest entry fees, where it keeps a percentage as platform fees. It also earns from advertisements, brand partnerships, and in-app purchases.
Vidhi Punamiya
Megha Rani
