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Tencent’s Dream11 Stake Bought By Tiga Investment

Tencent, a Chinese multinational conglomerate, has made significant investments in various sectors, including in the gaming and technology industries with Dream11. The fantasy sports company, founded in 2008, is an Indian fantasy sports platform that allows users to create virtual teams and participate in various sports contests. With over 100 million registered users, Dream11 has established itself as a leader in the fantasy sports market in India.

The Chinese company invested in Dream11 in 2019 and has stayed with them for five years. However, news emerged that they were now looking to sell their stake in the company and Taiga Investment announced their plans to acquire Tencent’s stake in the company. Tencent’s investment significantly boosted Dream11’s growth, and Taiga’s entry could catalyse further development. With over 100 million users, Dream11 represents a lucrative opportunity.

Tencent Decide To Exit Dream11

In a significant move in the Indian gaming industry, Tencent has decided to exit Dream11 company Sporta Technologies Ltd., and the Singapore-based Tiga Investment Pte Ltd got the green light to take up the stake. The deal will reportedly have the two companies exchange $150 million (~₹1,260 Crore). 

Tencent invested in the app in 2019 and has seen good and bad times with their investment. Gaming and betting apps boomed during the lockdown. Chinese companies and their investments in India were frowned upon when India had diplomatic issues with China during the 2020 border tensions. Earlier this week, the Competition Commission of India (CCI) gave a thumbs up to the deal, paving the way for one of the biggest stake changes in the Indian gaming scene. CCI spoke about this deal, saying:

“The parties and their respective group entities and affiliates do not have any horizontal overlaps, existing or potential vertical linkages and existing or potential complementary business activities in India. The proposed transaction is unlikely to cause any appreciable adverse effect on competition in India”

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Tencent has had problems of its own, and while it is growing as one of the biggest investors in the sports and entertainment sector, concerns about the company’s Chinese origins have always been a subject of nervousness for companies. The Indian fantasy sports company has constantly been in the headlines for its lawsuits. It was pitted in an insolvency plea in 2023,  stemming from licensing issues, amounting to a debt of more than ₹7 Crore. The plea was overturned in 2024.  They made the headlines again in 2023 when Dream11 was slapped with a GST demand notice of more than ₹1000 crore.

Tiga Investment’s Future With Dream11

Credit: CleverTap

Tiga Investment was co-founded by Ashish Gupta and George Raymond Zage III in 2018. They now have a diverse portfolio spanning various industries, including gaming, web3 platforms, and retail technology. The company did very well and in 2022 decided to merge with Grindr Group LLC, further solidifying their presence in the global investment landscape. This merger was reportedly worth around $2.10 Billion.

Tiga is now continuing further into its plan of investing in the fantasy gaming sector. This acquisition of Tencent’s stake in Dream11 aligns with Tiga’s strategy of investing in high-growth sectors like fantasy sports and gaming. This move will not only benefit Taiga and Dream11 but also enhance the overall fantasy sports space in India. It will be interesting to see what changes are implemented now that Dream11 has a new investor and if they will be looking to expand even further in the future.

Tiga Investments focuses on making long-term investments in differentiated businesses with strong management teams. They have been heavily involved with online gaming companies and Dream11 will be an incredible addition to their portfolio. Both Taiga and Dream11 will hope that this deal marks the start of a long and successful partnership between the two companies.

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