Media and e-commerce group Naspers has begun discussions to purchase a stake worth approximately $100m in India-based fantasy sports platform Dream11 through a secondary share transaction, LiveMint has reported.
Kalaari Capital, Think Investments and Multiples Alternate Asset Management are expected to be among the investors considering exits. Dream11 is targeting a $2.5bn valuation for the deal, up from $1.1bn in April this year.
Founded in 2012, Dream11 operates a fantasy sports platform covering cricket, football, kabaddi and basketball. Users create teams based on real-life players and can win money based on the chosen players’ actual performances.
The platform reportedly processed $2bn worth of transactions during the last quarter to generate revenue of approximately $150m. It had 50 million subscribers as of February this year and is aiming to double the size of its user base by the end of 2019.
Steadview Capital was thought to be considering a $100m primary investment in Dream11 in March this year, but LiveMint’s report suggests the hedge fund manager ended up buying $60m worth of shares from undisclosed sellers in a secondary transaction the following month.
Internet group Tencent led the company’s $100m series D round in September 2018. The round reportedly valued it at $700m and also featured Kalaari Capital and Multiples Alternate Asset Management.
Details of Dream11’s previous funding could not be ascertained but Kalaari Capital, Think Investments and Multiples Alternate Asset Management were all among its earlier investors.
