Dream11 Business and Revenue Model | How Dream11 Makes Money?

There was a general lack of vision regarding Dream11's potential when the platform first went live. Compared to just 2 million in 2016, Dream 11 now has over 100 million registered users. The consistent financing, sponsorship partnerships with cricketers, excellent marketing campaigns, and prize money are only a few of the reasons for this phenomenal success. This post will examine Dream 11's business model and how it generates revenue through its various revenue streams in detail.

About Dream11

Dream11 is an indigenous Indian brand that facilitates interaction and display of expertise among Indian sports lovers. Using real-life players from upcoming matches, fans may assemble their teams, compete with one another, and earn points depending on how well their players perform on the pitch. Dream Sports is an umbrella brand that includes Dream11, FanCode, DreamX, and DreamSetGo, among others. Dream11 also holds the distinction of being the first fantasy sports platform to ever become a "Guinness World Record”. It was founded in 2008 by Bhavit Sheth and Harsh Jain. The company, which has its headquarters in Mumbai, joined the Unicorn Club in April 2019. In addition to being the primary sponsor of the Indian cricket team at the moment, it was the title sponsor of the 2020 Indian Premier League.

Dream11 Company | Founders | Business Model | Success Story

Dream11 is the first Indian gaming company to enter unicorn clubs. Know about Dream11 history, founder, Funding, growth, revenue model and more.

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Dream11 Business Model

A premium business model allows Dream11 to draw in a big user base and make money through premium services. The net profit for Dream11 in FY23 was INR 187.8 crore, up 32% from the previous year. Its business strategy is structured such that it earns money from the joining fees of the contests, which users must pay to take part in paid public or private contests. It can be quite tough and resource-intensive to turn free users into paying clients. A lot of people still favor Dream11, even though other websites provide cheaper commissions or don't charge anything for private competitions (like HalaPlay or MyTeam11). This preference is largely due to its ability to create personalized competitions, which is particularly useful when playing with friends or creating your cricket team.

How Dream11 Makes Money | Dream11 Revenue Model

Dream11 makes money through various streams. Although, Ad networks, such as Google Adsense, do not contribute to Dream11's earnings. Its revenue streams are discussed below:

• Affordable Starting Prices: To fund their platform, Dream11 collects entrance fees from users who wish to take part in sponsored contests.
• Earning Commission: When users win prizes based on the real-time performance of the players they select, Dream11 takes a cut of the overall prize pool in addition to the entry fee. This commission, which, as of December 2023, typically amounts to 15% to 20% of the total prize pool, boosts their total earnings.
  Half of the players in a Dream11 tournament can receive cash awards; the top finishers get the largest share, while the bottom finishers get a smaller portion. Dream11 offers a 50% chance of winning, unlike a lottery. When users have a better chance of winning, they are more likely to participate.
• Minimum Withdrawal: A minimum withdrawal quantity of Rs 200 is required. Dream11 has come up with yet another innovative method to keep users coming back. The reason is, that you'll keep trying to play contests till your balance reaches Rs 200.
• Platform Fee: Not all of the money that was collected from entries is given out when a contest ends. A portion of this goes to Dream11's "platform fee" (15%) and the balance goes to the winners.

Dream11 Financials

In FY22, Dream11 reported an operating revenue of INR 3841 crore, with total expenses amounting to INR 3762 crore, resulting in a profit of INR 142 crore. The financial performance improved in FY23, with operating revenue increasing to INR 6384 crore and total expenses rising to INR 5839 crore. This growth led to a higher profit of INR 188 crore for the year.

USP of Dream11

Dream11 has developed a highly effective marketing strategy thanks to its data-driven culture and the insights it has gained. Its organic traffic accounts for more than 30% of its total users. The company's digital marketing and referral programs, combined with its powerful media efforts, have successfully captivated the Indian masses and made fantasy sports a phenomenon in the country.

Dream11 SWOT Analysis

Dream11 Strength

• The company's rapid rise to fame and the endorsements of numerous renowned individuals make its expansion easy to track.
• Dream11 can experiment with numerous things to increase its growth further because it is one of the leaders in its area.
• Dream11 has encouraged people to think about money, make decisions based on facts, and analyze sports.

Dream11 Weakness

• Problems with operations.
• In big leagues, the platform costs are too unreasonable, exceeding 25% per contest.
• Its technology needs an upgrade.

Dream11 Opportunities

• Dream11 is benefiting from the growing popularity of online gaming.
• Additionally, the company's business is expanding as new leagues and tournaments are being organized regularly.

Dream11 Threats

• Many individuals still see it as more of a gambling app than a gaming app.
• Dream11 has suffered a significant setback as a result of its removal from the Play Store.

Conclusion

Over the past ten years, fantasy sports have seen tremendous transformation. There is a staggering rate of new apps appearing. This has led to a leveling off of competition in the fantasy game market. However, to inject some freshness, innovation is required.

Nowadays, Dream11's competitors all use the same point system and UI, which turns off a lot of players on the first try because they're always looking for something new. Dream11 has developed, and grown rapidly, even though formidable competitors have emerged. With the increasing commercialization of sports, Dream11's future is bright.

FAQs

What is Dream11 about?

Dream11 is an Indian fantasy sports platform where users can play fantasy cricket, hockey, football, kabaddi, handball, basketball, volleyball, rugby, futsal, American football, and baseball. In April 2019, Dream11 made history as the first Indian fantasy sports company to achieve unicorn status.

Does Dream11 work outside India?

You can participate in leagues on Dream11 after registering, but all transactions must be conducted in INR through Indian banks.

Who founded Dream11?

Bhavit Sheth and Harsh Jain founded Dream11 in 2008.