Dream11 looks to raise $100 Mln from Tencent
Social media giant Tencent Holdings is in advanced negotiations to invest US$100 million in Mumbai-based online fantasy sports platform Dream11, according to Indian media.
The report said that Tencent has offered a term sheet for a transaction that could give Dream11 at a pre-money valuation of US$400 million to US$500 million.
Founded in 2012, Dream11 is an online fantasy cricket and football gaming platform. A fantasy sport allows participants to assemble imaginary or virtual teams of real players of a professional sport. These teams compete based on the statistical performance of those players in actual games.
Dream11’s existing investors include technology-focused venture capital firm Kalaari Capital, San Francisco-based Think Investments and Indian private equity firm Multiples.
Gaming is Tencent’s core business. The company booked total revenues of RMB66.39 billion (US$10.59 billion) last year, with RMB24.37 billion (US$3.89 billion), or 41%, coming from online gaming.