Dream11’s gross revenue grows over 50% in FY22 but profit dips over 56%

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Dream11 continued its growth in Fiscal Year 2022, with gross revenue up by INR 4000 crore, over 50%. India’s biggest fantasy gaming platform has been a dominant player in the Indian market. Still, it also witnessed a noticeable dip in its profit of over 56% in Fiscal Year ending March 2022.

The firm raised $840 million (RS 6500 crore) from Alpha Wave, DST Global, D1 Capital, Redbird Capital, and Tiger Global in FY22. It also profited INR 224 crore from interest on its current investments.

But Dream11’s main revenue source remains fantasy sports contests (gross gaming revenue). It generates a big revenue by charging an entry fee to participate in each contest. In FY21, Dream11’s revenue from fantasy sports contests was INR 2554 crore, and it rose 50.4% to INR 3841 crore in FY22.

The firm’s largest expense is the cost of advertisement and marketing, which includes contracts with star cricketers as brand ambassadors. It has also sponsored the Indian Premier League for the last three years. The expenses through promotion have raised from INR 1249 crore in FY21 to INR 2158 crore, 72.8% in FY21.

In another major expense, the company’s aggressive hiring in FY22 raises expenses by 80.1% to INR 497 crore due to its employee benefits.
Overall, Dream11’s expenses rose 70.2% to INR 3762 crore in FY22 from INR 2210 crore in FY21, including INR 1050 crore due to transaction charges, information technology, and other remaining expenses.

Dream11, founded in 2008, has claimed over 150 million users and remains an official partner of the International Cricket Council and is likely to explore other sports to expand in the near future. In one of the interesting changes to its policy, the company recently announced an INR 1 lakh fine for employees who disturb their colleagues on leaves.