The Indian Premier League’s 13th edition (IPL 2020) title sponsor Dream11 is in talks with at least four private equity firms to close $235Mn fund raise according to a report. The deal according to the report by Indian Express will reduce much debated Chinese investment i.e Tencent’s holding in the company to single digit.
This report claims, deal consists of a $35-million primary fund raising and a $200-million secondary sale of shares, which could see Chinese firm Tencent holdings Ltd’s shareholding come down to single digits, said sources. Currently, Tencent holds about 10.9 percent shares in the holding company for Dream11, now known as Sporta Technologies Pvt Ltd, said sources.
Harsh Jain, the promoter of the gaming platform, will continue to remain the single largest shareholder, sources said.
IPL 2020 : Dream11’s valuation will sore past $2.5Billion if the deal goes through
The deal is likely to see Dream11’s valuation increase to $2.5billion.
It is worth noting that Dream11 was valued at $1.1 billion in April 2019, when US hedge fund Steadview bought stakes from the early investors of Dream11.
According to the 2019 annual report filed by the company (Dream11), India’s number 1 fantasy gaming firm has shown almost 3 times growth in its revenues vis a vis FY2018. In FY-2019 Dream11 revenue from operations increased to Rs 775 crore from Rs 224 crore in financial year 2018. Its losses also widened to Rs 131 crore from Rs 65 crore a year ago.
The 13th edition of the Indian Premier League (IPL 2020) has released a new logo for the IPL tournament in UAE.
Under the deal with Vivo, BCCI were receiving Rs 440 crore per year.
s 40cr From 2008-2012, DLF was the IPL’s title sponsor for Rs 40 crore per, amounting to Rs 200 crore for five years.
■ Rs 79.2cr In 2013, Pepsi came and it was to pay the BCCI Rs 396cr over five years, which means Rs 79.2cr per year. However, Pepsi stayed for three years until 2015 before pulling out over a betting and spot-fixing scandal.
■ Rs 439.80cr In 2018, Vivo inked a fresh five-year title sponsorship deal
The 13th edition of the IPL was originally scheduled to begin on March 29 but was postponed due to the coronavirus pandemic.