Dream11's FY20 advertising expenses jumped 70% to Rs 1328 crore
Business promotion expenses of the company rose 40% to Rs 405.5 crore from Rs 289.6 crore
Sports technology company, Dream Sports, which is the parent company of online fantasy sports platform Dream11, spent Rs 1328 crore on advertising promotional expenses for the fiscal ended 31st March 2020. This is a 70% increase over Rs 785 crore that the company spent on advertising promotion in the previous fiscal.
According to financial data accessed by business intelligence platform Tofler, the company's advertisement expenses zoomed 148% to Rs 821.73 crore from Rs 330.48 crore. Business promotion expenses rose 40% to Rs 405.5 crore from Rs 289.6 crore. Sponsorship expenses was down 39% at Rs 100.74 crore compared to Rs 164.9 crore.
During a recent interview with exchange4media, Dream11 CMO Vikrant Mudaliar had said that digital and TV advertising along with sponsorships contribute to nearly 100% of the platform's marketing spends, with almost all of these spends going towards sports-based properties.
“Fantasy Sports is a digital sports engagement platform that is completely dependent on live sporting events. Fantasy sports also help in increasing sports consumption as it deeply engages fans with the sport they love. Clearly, sports is the most important and organic destination for Dream11 to not only advertise, but also support its growth. We have always evaluated non-sports properties to build a dialogue with users, but our biggest efforts and value realisation have always come from LIVE sports due to their synergy with our brand,” Mudaliar had stated.
In August 2020, Dream11 had taken its biggest marketing bet by taking the Indian Premier League (IPL) 2020 title sponsorship for Rs 222 crore. For IPL 2021, the platform has further deepened its association by becoming the official on-ground partner of IPL besides partnering with IPL teams including Sun Risers Hyderabad, Rajasthan Royals, Punjab Kings, Mumbai Indians, Delhi Capitals, and Chennai Super Kings. Dream11 has also forked out a large sum to become the co-presenting sponsor on both Star Sports and Disney+ Hotstar.
During the fiscal, the company's co-founders Harsh Jain and Bhavit Seth had received received Rs 1.22 crore and Rs 98.19 lakh as remuneration.
Dream Sports is India’s biggest sports technology platform with over 11 crore active users as of 2021 playing Fantasy Cricket, Football, Kabbadi, Hockey and NBA. It is a game of a skill that offers Indian sports fan a platform to showcase their sports knowledge. Fans can create their own virtual team made up of real-life players from upcoming matches, score points based on their on-field performance and compete with other fans.
The company helps sports fans to connect deeper with the sports they love by being a team owner, not just a spectator. The company has partnered with various boards and leagues such as Board of Control for Cricket In India (BCCI), Cricket Australia, Federation Internationale de Hockey, IPL, Pro Kabaddi League, Caribbean Premier League, Indian Super League, and National Basketball Association.
In March, Dream Sports had raised $400 million from TCV, D1 Capital Partners, and Falcon Edge through a secondary share sale by the firm’s early investors at a valuation of nearly $5 billion. In September 2020, the company had raised $225 million from Tiger Global, TPG, Chrys Capital in September 2020 at a valuation of about $2.5 billion in a mix of primary and secondary investments.
Recently, Dream Sports had set up a corporate venture capital and M&A arm called Dream Capital (DreamCap) with a corpus of $250 million to unlock the high growth potential of startups in sports, gaming and fitness-tech industries in India. Over the past one year, DreamCap has already invested in 8 start-ups in India, such as SoStronk, DreamGameStudios, Elevar, FanCode and DreamSetGo.
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