Gurugram-based Fantasy Akhada, an online fantasy sports platform, is set to raise funds in order to expand its sports streaming arm, among other services. The startup, endorsed by cricket commentator Harsha Bhogle, will use the funding to focus on enhancing its in-house services to scale up the organization.
In an exclusive report by YourStory, two personnel aware of the proceedings in the company lifted the lid on things and stated that the fantasy gaming platform aims to raise a Series B funding round between $40-50 million.
“Fantasy Akhada will use the funds to expand the company’s sports streaming arm (VU Sports), among other products,” one of the sources revealed to YourStory, requesting anonymity.
Although there is still uncertainty about the lead investor in the round, Prime Securities, a Mumbai-based investment banking firm, will be a participant in the funding round. Notably, Prime Securities is one of the existing investors in the company. But both parties have remained mum on the latest revelation regarding their plans.
Fantasy sports have seen a meteoric rise since the beginning of the pandemic, and as per Deloitte, the sports fantasy games market is at Rs 34,600 crore at the moment and is expected to grow at a compound annual growth rate (CAGR) of 38%. Meanwhile, India is set to record one billion smartphone users by 2026, potentially leading to a large number of new users in the coming years.
The fantasy sports-based startup was founded in 2020 when a group of ardent football fans took inspiration from the season-long Fantasy Football League of the renowned English Premier League. But with up to 180 startups operating in the space, the startup was focused on becoming more service oriented and ventured into VU Sports.
VU Sports, a YouTube channel, enables viewers to connect with the game and do sports analysis and discussions. Recently, it streamed the Nepal T20 cup and is hoping to stream more cricket leagues in the future. The Gurugam-based company faces stiff competition in the sector from Mumbai-based Dream 11, and Nazara Technologies, among others.