India-based fantasy sports game operator Dream Sports has launched a corporate venture capital arm called Dream Capital with $250m in cash, the Economic Times reported today.
Dream Sports runs Dream11, an online fantasy sports game that allows users to assemble teams for individual rounds of league games in sports such as cricket or football in order to win money.
The newly formed fund will invest in early-stage companies across areas such as gaming, sports and fitness technology, and the deals are expected to support Dream Sports’ expansion into adjacent areas to fantasy sports. The capital has come from its balance sheet.
Harsh Jain, Dream Sports’ co-founder and CEO, told ET: “We want to redeploy our [earnings before interest, tax, depreciation and amortisation] and reinvest further into inorganic growth because, while organic growth continues, we do not want to fall into that age-old trap of trying to do everything ourselves.”
The vehicle will provide between $1m and $100m per deal and is open to strategic acquisitions in addition to minority investments. The company intends to invest in about 20 startups over the first two years of its operations.
