Dream11 has transformed fantasy sports in India, becoming the country’s leading fantasy gaming platform. Founded in 2008 by Harsh Jain and Bhavit Sheth, the platform allows users to create virtual teams based on real-life players and earn points based on their performance in actual matches.
Over the years, Dream11 has grown exponentially, crossing 200 million users by 2023 and becoming India’s first fantasy sports unicorn in 2019. But how does Dream11 make money? What is its business model? This article breaks down Dream11’s revenue streams, operations, and the strategies behind its success.
Dream11 Business Overview
| Attribute | Details |
| Company Name | Dream11 |
| Legal Name | Sporta Technologies Pvt Ltd |
| Founded | 2008 |
| Founders | Harsh Jain, Bhavit Sheth |
| Headquarters | Mumbai, Maharashtra, India |
| Industry | Fantasy Sports |
| Primary Platform | Fantasy cricket, with offerings in football, basketball, kabaddi, hockey, volleyball, handball, and baseball |
| User Base | Over 200 million users as of October 2023 |
| Revenue | ₹6,384 crore for FY2023 |
| Net Income | ₹188 crore for FY2023 |
| Valuation | Valued at $8 billion as of November 2021 |
| Parent Company | Dream Sports |
| Number of Employees | Over 800 as of September 2022 |
| Website | www.dream11.com |
| Notable Achievements | – First Indian fantasy sports company to become a unicorn (April 2019) |
| – Title sponsor of IPL 2020 | |
| Brand Ambassadors | – Mahendra Singh Dhoni |
| – Kartik Aaryan | |
| – Samantha Ruth Prabhu | |
| – Rohit Sharma | |
| – Rishabh Pant | |
| – Shikhar Dhawan | |
| – Hardik Pandya | |
| – Shreyas Iyer | |
| – Jasprit Bumrah | |
| Legal Status | Recognized as a game of skill by the Supreme Court of India (August 2021) |
| Market Position | Holds approximately 55% market share in the Indian fantasy sports industry |
Understanding Dream11’s Business Model
Dream11 operates on a freemium and contest-based paid business model. The company generates revenue primarily by organizing paid fantasy sports contests and taking a cut from the prize pool.
Key Aspects of Dream11’s Business Model:
- Fantasy Sports Platform – Dream11 offers fantasy games for cricket, football, basketball, kabaddi, hockey, and more.
- User Participation Fees – Users pay entry fees to join contests and compete for cash prizes.
- Platform Commission – Dream11 takes a commission (15-20%) from the total contest prize pool.
- Advertising & Partnerships – The company earns through brand promotions, sponsorships, and partnerships with sports leagues.
- Merchandise & Affiliate Marketing – Dream11 promotes partner brands and merchandise sales.
By leveraging a data-driven and mobile-first approach, Dream11 has created a highly engaging ecosystem where users actively participate in fantasy sports while generating massive revenue for the company.
How Does Dream11 Earn Money?
Dream11 primarily makes money through entry fees, commissions, brand sponsorships, and advertisements. Let’s explore these revenue streams in detail.
1. Contest Entry Fees (Primary Revenue Source)
Dream11 hosts paid fantasy contests where users enter by paying a fee. The total entry fees collected create the prize pool. Dream11 takes a platform commission (15-20%) from this amount before distributing the remaining prize money to winners.
Example of Prize Pool Breakdown:
- Total Entry Fees Collected: ₹10 crore
- Dream11’s Commission (20%): ₹2 crore
- Remaining Prize Pool for Winners: ₹8 crore
This model ensures that Dream11 earns a consistent and scalable income from every paid contest.
2. Freemium Model & User Base Growth
Dream11 follows a freemium model, offering free contests to attract new users. Once users get comfortable with the platform, they are encouraged to participate in paid contests, which generate revenue.
How Free Contests Help Monetization?
- Increase User Engagement – Users get familiar with the platform and build confidence.
- Convert Free Users to Paid Players – After experiencing the gameplay, many users start entering paid contests.
- Boosts Ad Revenue – More active users mean higher impressions for advertisements and brand promotions.
The freemium approach has helped Dream11 acquire 200+ million users, making it India’s largest fantasy sports platform.
3. Platform Commission (Revenue from Prize Pools)
Dream11’s primary revenue stream comes from the commission charged on paid contests. On average, the platform charges 15-20% commission per contest.
Why is Platform Commission Important?
- Steady Cash Flow – Since thousands of contests run daily, Dream11 earns revenue consistently.
- Scalability – The more users participate, the higher the revenue potential.
- Risk-Free Model – Dream11 does not invest its own money in prize pools; instead, it profits from user participation.
This commission-based model ensures Dream11 earns money regardless of the contest outcomes.
4. Advertisements & Sponsorships
With millions of daily active users, Dream11 has built a strong advertising revenue stream. Brands collaborate with Dream11 to showcase ads, sponsor contests, and run promotional campaigns.
Types of Advertising Revenue:
- Banner Ads & Pop-ups – Dream11 displays ads from companies looking to reach sports enthusiasts.
- Sponsored Contests – Brands like Dream11 IPL, Coca-Cola, and PhonePe sponsor specific contests for marketing.
- Affiliate Marketing – Dream11 promotes third-party sports-related products, earning commissions on referrals.
Advertising has become a significant revenue driver, helping Dream11 diversify its income beyond contest fees.
5. Brand Partnerships & Sponsorship Deals
Dream11 has secured sponsorship deals with major sports leagues and teams, further monetizing its brand.
Major Sponsorships:
- Official Partner of IPL (Indian Premier League)
- Title Sponsor of IPL 2020
- Fantasy Partner for ICC, NBA, and Pro Kabaddi League
- Team Sponsorships (Mumbai Indians, Chennai Super Kings, etc.)
These partnerships provide Dream11 with brand visibility, credibility, and additional revenue streams.
6. Merchandise & Affiliate Sales
Dream11 has ventured into merchandising and affiliate marketing, selling branded sports merchandise and promoting third-party products.
Revenue from Merchandise Sales:
- Official Dream11 jerseys, sports kits, and accessories
- Branded merchandise collaborations with IPL teams
- Affiliate partnerships with sports retailers and e-commerce platforms
Though not a primary revenue source, merchandising adds to Dream11’s overall earnings and brand value.
Dream11’s Competitive Advantage
1. First-Mover Advantage in India
Dream11 was one of the first fantasy sports platforms in India, allowing it to capture a significant market share early.
2. Strong Brand Recognition
With IPL sponsorships and celebrity endorsements, Dream11 enjoys massive brand recall among Indian sports fans.
3. High User Engagement & Retention
Dream11’s gamification strategies, referral bonuses, and leaderboards keep users engaged, ensuring long-term monetization.
4. Data-Driven Decision Making
Dream11 uses AI-driven analytics to optimize contests, user experience, and marketing campaigns, maximizing revenue potential.
Challenges & Risks Faced by Dream11
1. Legal & Regulatory Issues
Fantasy sports operate in a legally grey area, with some states banning real-money gaming. Future regulations could impact revenue.
2. Increasing Competition
Platforms like MPL, My11Circle, and FanFight are aggressively expanding, challenging Dream11’s market dominance.
3. User Trust & Transparency
With large cash prizes involved, ensuring fair play and preventing fraud remains a key challenge.
4. Dependency on Cricket & Seasonal Trends
Cricket contributes to over 80% of Dream11’s revenue. Seasonal dips in matches could affect revenue growth.
Future Growth Strategies for Dream11
1. International Expansion
Dream11 is eyeing international markets like UK, Australia, and UAE, where fantasy sports are popular.
2. AI & Machine Learning Integration
Using AI to provide personalized contest recommendations and improve user experience.
3. Expanding to Non-Sports Fantasy Games
Exploring fantasy stock trading, movies, and entertainment-related games.
4. Strengthening Legal Compliance
Ensuring compliance with Indian and international gaming laws to avoid legal setbacks.
Conclusion
Dream11 has built a highly profitable business model by leveraging fantasy sports, contest entry fees, advertising, and brand partnerships. With a massive 200 million+ user base, strong market dominance, and innovative monetization strategies, Dream11 continues to thrive in India’s booming fantasy gaming industry.
While regulatory challenges and competition pose risks, Dream11’s data-driven, user-centric approach ensures sustained growth. As the fantasy sports market expands, Dream11 remains well-positioned to innovate, grow, and dominate the industry. 🚀
Shashi Kant is the Founder and Editor of BusinessScroller.com, a leading platform for business insights, finance trends, and industry analysis. With a passion for journalism and expertise in business reporting, he curates well-researched content on market strategies, startups, and corporate success stories. His vision is to provide valuable information that empowers entrepreneurs and professionals. Under his leadership, BusinessScroller.com has grown into a trusted source for in-depth articles, customer care guides, and financial expertise.
