Sports

Dream11 nets a whopping 236% profit in FY20

Our Bureau Mumbai | Updated on September 21, 2021

Its revenue too jumped 166 per cent to ₹2,130 crore.

Sporta Technologies Private Limited, popularly known as Dream11, reported ₹2,130 crore revenue for the financial year 2019-20e, a 166 per cent jump since the year prior to that. It had announced whopping 236 per cent rise in net profit to ₹181 crore

The company’s total expenses for the fiscal were reported as ₹1,868 crore. The financial data was accessed by the business intelligence platform, Tofler, and reviewed by BusinessLine. Its advertisement expenses for FY20 were ₹821.73 crore, business promotion ₹405.54 crore whereas its sponsorship expenses were ₹100.74 crore.

In FY 19, Dream11 spent advertisement expenses to the tune of ₹330.48, business promotion expenses stood at ₹289.61 crore and sponsorship expenses were ₹164.98 crore.

Speaking about the Covid-19 related uncertainties, the company said that: “There are uncertainties regarding the current coronavirus (Covid-19) pandemic, and the company is closely monitoring the impact of the pandemic on all aspects of the business.”

“The prolonged lock down situation has resulted in postponement or cancellation of major sporting events across the globe. The company has taken steps to assess the budgeted fixed costs. However, the impact assessment of Covid-19 is a continuing process given the uncertainties associated with its nature and duration,” it added.

The company’s networth is at ₹788 crore, which is a jump from ₹499 crore the previous fiscal.

Listing plans

According to recent reports, Dream11 plans to get listed. It is said to be raising ₹40 crore as pre-IPO funding to get its valuation over ₹850 crore. The company plans to get listed in the US via a Special Purpose Acquisition Company (SPAC).

A SPAC is an empty corporate shell that raises money from investors with the aim of acquiring private businesses by merging them. Also known as blank-cheque companies, SPACs have no operations or business plans when they seek investor money. They raise money, then hunt around for merger candidates and hit the jackpot if they get lucky with their investments.

Published on September 21, 2021

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