Gone are the days when you had to go out to play the games you love the most. The love for Cricket in India is known even outside the boundaries of our country. It is indeed the king of people’s hearts. The next most cherished sport in India is football that people love to watch and play. Dream11 business model
People from all over the world wish to attend the matches of their favorite sport and at least get a glance of their favorite players. Who would have imagined that one day you can do all this while staying in your home, and even earn some handsome amount out of it? Yes, people! There is a way.
Dream11 Business Model: How It All Started
Dream11, currently the biggest fantasy gaming app, was created in 2008 by Harsh Jain and Bhavit Sheth. This app allows its users to create that fantasy into reality by letting them form their dream team consisting of their favorite players.
Dream11 Business Model is designed in a way that is capable of attracting new customers and also retaining the existing ones. The Business Model of this application allows its users to form their own team of 11 players out of 24-25 players for a particular match. After forming a team, people can participate in various contests of their choice.
The players are impersonations of their real self and their performance in ‘real-life games’ determine the points earned in the game.
How does Dream11 generate its revenue?
- Dream11 hosts several contests and it charges a small amount fee from the participants. The fee varies from Rs. 30-60.
- After the match, one with the highest points is awarded the highest prize money and the prize money decreases with the decreasing number of points.
- One advantage of having this kind of business model is that the users who participate in the contests receive a certain portion of prize money.
- The prize money is distributed among all the winners from the prize money pool which can be as much as 2-3 lakhs.
With great success, comes tough competition! This statement is true in this case as well. Some of the competitors of Dream11 are:
1. Procam International:
Procam International is a sports management company. It was founded in 1998 with a vision of making a difference in the world of sport and leisure.
2. Mobile Premier League (MPL):
Mobile Premier League (MPL), similar to Dream11, allows its users to play live tournaments. Founded by Sai Srinivas Kiran Garimella, it has annual revenue up to $5 million.
My11Circle was launched in 2019 by Bhavin Pandya who is the CEO of this fantasy sports game. Saurav Ganguli is the brand ambassador and its annual revenue is estimated up to $5 million.
Going steady in its growth, Dream11 is expected to outgrow any of its competitors in the upcoming years.
Finances and Funding: Dream11 Business Model
- Although started in 2008, right after the Indian Premier League (IPL) was introduced in India, Dream11 picked up its pace in 2015. In 2016, they raised their users to 13 lakh, and in 2018, they reached a count of 1.7 crore users.
- They surpassed their previous numbers and reached 7 crore plus users in 2019, and currently, they have a user base of 9 crores and the numbers are ever-increasing. Isn’t it amazing?
- During these years, they received funding from Kalaari Capital, Steadview, Tencent, Multiple equities and Think Investments. In 2020, it also became the title sponsor of the Indian Premier League (IPL).
- The company is currently valued at $1 billion. They have Mahendra Singh Dhoni, the most beloved player of Cricket in India, as their brand ambassador.
We Hope, you get to learn a lot from the Dream11 business model. One can take inspiration from the Dream11 business model while starting a new business and even the tech giants can implement similar models and strategies.