- Dream11 spent Rs 785.08 on advertising and promotions during FY19, as opposed to Rs 230.30 registered crore in the last financial year to grow the revenue, media reports said.
- Dream11 is one of the nine companies that this year turned Unicorn, but with a difference. Unlike others, the revenues of the company kept up with the expenses in its financial performance during FY19.
Dream11 spent Rs 785.08 on advertising and promotions during FY19, as opposed to Rs 230.30 registered crore in the last financial year, media reports said.
The fantasy sports company has posted Rs 775 crore revenue, reporting a 3.5-fold rise from the Rs 224.64 crore of the last fiscal year.
News reports also said the total expenditure of Dream11 has risen three times from the last fiscal year to Rs 935.05 crore.
The total assets, meanwhile, were recorded as Rs 736.14 crore, recording a 10.8-fold increase from the previous year.
Dream11 is one of the nine companies that this year turned Unicorn, but with a difference. Unlike others, the revenues of the company kept up with the expenses in its financial performance during FY19.
In April this year, when it raised over $60 million from Steadview Capital, the Mumbai-based fantasy sports company turned Unicorn. For the subconscious, Dream 11 allows users to play sports such as baseball, soccer, kabaddi, and basketball fantasy games.
While the fantasy gaming company Dream11 revenue leaped from Rs 224.64 crore in FY18 of 3.5X to Rs 775 crore, total expenditure recorded a little over three-fold growth in Rs 935.05 crore in FY18 of Rs 293.33 crore.
Advertising and promotional expenses, including promotional loans and reward schemes, account for 84 percent of the company’s total expense. Dream11 spent Rs 785.08 crore alone on advertising and promotions, up to 3.4X in the last fiscal year from Rs 230.3 crore.
Employee benefit expenses have risen from Rs 26.52 crore in the preceding fiscal year to Rs 66.4 crore in FY19. In IT expenses, Dream11 spent Rs 41.3 crore running its mobile application and another Rs 23.02 crore operating.
The company raised Rs 652.66 crore through the issue of preferential shares in FY19, according to its annual financial statement.
During FY19, the company purchased financial securities worth Rs 1,705 crore, earning Rs 9,88 crores as interest and another Rs 13,62 crores as gain from these investments on sale.
The net cash outflow of Dream11 from operations rose 4.3X to Rs 53.63 crore in FY19 from Rs 12.84 crore in FY18 due to the increase in expenses. During FY19, losses have ballooned 2X to Rs 131.64 crore compared to FY18’s Rs 65.12 crore.
Ironically, the company’s 100% owned subsidiary, “Fiduciary Billing Services,” which handles the payments and collections for the company has managed to post a profit of Rs 1.46 in the same year.
The total assets of the company stood at Rs 736.14 crore during the fiscal end of March 2019. It is a 10.8X jump from Rs 68.12 crore in FY18 and the company held 91.2 percent of the assets as current financial assets.
In FY19, the total value of related party transactions jumped from just Rs 1.5 in FY18 to Rs 46.04 crore 30.7X. Likewise, co-founders’ remuneration–Harsh Jain and Bhavit Sheth and Chief Financial Officer Navin Agarwal –jumped from just Rs 62.6 lakhs in FY18 to Rs 42.6 crore in FY19. This also includes the ESOP allocation as per the 2015 ESOP scheme during the year.
When companies such as Dream11 post such positive revenue, the Indian Startup Ecosystem tends to be going in the right direction.