Dream11 Onboards 1.1 Million New Users on IPL 2024's Opening Day

Fantasy Gaming Giant Sees Surge in Users and Revenue

The much-awaited 17th edition of the Indian Premier League (IPL) kicked off on Friday, March 22nd, bringing with it a wave of excitement not just for cricket fans but also for fantasy gaming platforms like Dream11. The unicorn company reported a stellar opening day, claiming a staggering 1.1 million new users signing up on their platform.

This surge aligns with the growing popularity of the IPL T20 Fantasy Leagues, which have become a mainstay for fantasy cricket enthusiasts across the country. Dream11's website emphasizes the strategic aspect of the game, stating, "TATA IPL fantasy cricket is a virtual skill-based game meant for entertainment purposes only. However, if you utilise your knowledge of the game, you can enjoy several rewards and bask in the thrill of having your own TATA IPL 2023 Fantasy team!"

Dream11's Dominating Presence in IPL Sponsorships

Dream11 has further solidified its position within the IPL ecosystem by partnering with a record-breaking eight teams this year. These include Mumbai Indians, Punjab Kings, Rajasthan Royals, Royal Challengers Bangalore, Sunrisers Hyderabad, Gujarat Titans, Kolkata Knight Riders, and Delhi Capitals. This extensive sponsorship network ensures Dream11 remains at the forefront of the IPL experience for millions of viewers.

Dream11's User Growth and Focus on the Indian Market

The company's impressive user base continues to expand. In 2023, Dream11 onboarded an additional 5.5 crore users, with a significant portion falling within the 25-60 age group. Notably, Tier I and Tier II cities contributed 28% of the new users, showcasing Dream11's growing reach beyond metropolitan areas. Additionally, the platform witnessed a remarkable 79% year-on-year growth in female users, highlighting a broadening demographic for fantasy sports.

Financial Performance and Regulatory Hurdles

Dream11's financial performance reflects its strong market position. The company reported a 32% surge in net profit to INR 187.83 Cr for the financial year 2022-2023 (FY23). Additionally, Dream11 saw a significant 66% jump in operating revenue to INR 6,384.49 Cr during the same period.

However, Dream11 is not without its challenges. The company is currently navigating a complex regulatory landscape surrounding real money gaming in India. In September 2023, Dream11 received a show cause notice from the Directorate General of GST Intelligence (DGGI) demanding a hefty sum of INR 28,294.19 Cr under the Central Goods and Service Tax Act, 2017. The notice disputes the tax classification of Dream11's services, arguing that their online fantasy sports should be subjected to a higher Goods and Services Tax (GST) rate of 28%.

Despite this hurdle, Dream11 maintains its focus on the burgeoning Indian market. Co-founder Harsh Jain recently stated at the 'Startup Mahakumbh' event in New Delhi that the company sees ample opportunities for growth within India and has no immediate plans for global expansion.

Dream11's performance on the opening day of IPL 2024 reflects the company's dominant position in the fantasy gaming market. With a rapidly growing user base, strategic sponsorships, and strong financial performance, Dream11 is poised to capitalize on the continued popularity of the IPL and fantasy sports in India. However, the company must navigate regulatory challenges surrounding the real money gaming sector to ensure sustainable growth in the long run.