Photo: Ivan Samkov

Is Dream11 making profit?

So, in 2008, when the first IPL season was launched, young entrepreneurs Harsh Jain and Bhavit Sheth thought of capitalizing on it. They launched their fantasy sports startup Dream11 & scaled it to INR 2554 crores revenue & INR 327 crores profits!

buildd.co - How Dream11 makes Rs 2554 Cr in revenue & Rs 327 Cr in profits?

Can horses run 100 mph?

Horses can run 55 mph; a Quarter horse sets this record; however, a fit horse that is bred for running can typically reach speeds of 30-35 mph.

Last updated Jul 4, 2021

What is the most Irish last name?

Murphy Murphy. The most common of all Irish names, the Murphy surname can be found in all four provinces. Murphys are primarily from Antrim,...

Last updated Jul 14, 2018

Make Your Bookie Cry And Pull The Hair By Generating $23,187

Promotion

75% of this money is distributed to the winning players and the rest 25% goes to Dream11. This is ofcourse in a case when Dream11 is able to fill all the spots for a contest. This model has resulted into very strong unit economics for Dream11. So much so, that, after spending a massive Rs 222 crores on IPL ads, Dream11 makes the money back in half an IPL season! But, how does Dream11 work? Well, here's a short explanation: Players join different contests for a particular live game by paying entry fees. The money from all these players makes the total money pool. For a while, Dream11 became a side project and Harsh had to focus on his services business. But, after they saw some success there, they came back to Dream11. After dumping all the extra features & making Dream11 into a paid app, the team was set on a track to fantasy game domination. 3. Finally, instead of focusing on the fantasy game element, they created a bunch of different features like blogs, forums, casual games and more! The cluttered app, plus no incentive for players had the initial team tanking. When Dream11 started out, the gaming industry experts all declared it to be the worst idea ever. And, they weren't wrong. Why? Well, there are several reasons: 1. Harsh had borrowed money from his parents and he was quickly running out. 2. Dream11 was running as a free app with ads From schooling in London, to university in Pennsylvania, Harsh Jain grew up with fantasy football. When he came back to India, fantasy games were non-existent. When IPL was launched in 2008, Harsh was stoked. He and his friend Bhavit Seth started working on building their very own fantasy game! On the night of 2nd April 2011, a collective population of 1.3 billion people yelled in applause as the Indian cricket team won the world cup for the first time in 28 years.

Indians LOVE cricket!

We LOVE watching it, we LOVE tweeting about it, but more importantly, we LOVE yelling at the TV screen with our hot takes — "Man! Why did he have to take that run!" Or "Sehwag should have opened" Long story short, Indians can't get enough of this sport. So, in 2008, when the first IPL season was launched, young entrepreneurs Harsh Jain and Bhavit Sheth thought of capitalizing on it. They launched their fantasy sports startup Dream11 & scaled it to INR 2554 crores revenue & INR 327 crores profits! But, on the back of India's cricket obsession, how did this fantasy "game" become an $8B company? In today's article, we break down just that by dissecting how Dream11 makes money. Let's dive in! How did Dream11 begin? Obsession with fantasy football Harsh Jain spent his schooling years in London, completely obsessed with football. That means watching league games and playing fantasy football with friends all the time. But, once he graduated from the University of Pennsylvania in the US and came back to India, he realised that people were not as obsessed with fantasy games as opposed to people in the UK and the US. As a 22-year-old, in 2008, Harsh was busy working at his family business Jai Corp when league sports entered India in a BIG way! Indian Premier League (IPL) made a debut & collectively 1.3 billion people were hooked! Harsh was also incredibly stoked. Finally, he had a league game to play fantasy sports with his friends. So, he immediately set out to look for a fantasy game. But, he couldn't find any. After a small discussion with his partner, Bhavit Sheth, the duo decided to create their own fantasy game around IPL called Dream11. Dream11 becomes a side dream When Dream11 started out, the gaming industry experts all collectively declared it to be the worst idea ever. And, they were not completely wrong. Version 1 of Dream11 was like a flight that never took off. In the offset of IPL, the timing was perfect for a viral fantasy sports game. But, the product was just not right. Harsh had borrowed money from his parents to fund Dream11 and he was very quickly running out of money. So, he had to find another way to keep the lights on & pay his employees. They decided to start a digital marketing agency called "Red Digital" & moved all their employees to work in this services company. That's except for the 11 people who were still trying to keep Dream11 alive. The services business took off. The agency bagged a contract from Mumbai Indians & started managing their Facebook page. In less than a year, they managed to get a million likes on the team's page - practically unheard of in the early 2010s. They were finally seeing some success, but Harsh knew this was not the end game. Lesson ➝ Start as a service, build product later A service business brings you immediate revenue & cash flow. So start by making your offering a service (eg. consulting) while building your product on the side.

What are pimp cars called?

pimpmobile A pimpmobile is a large luxury vehicle, usually a 1960s, 1970s or 1980s-model Lincoln, Cadillac, Buick or Chrysler vehicle, that has...

Last updated Oct 2, 2019

Why isn t my VPN working on DraftKings?

Use a dedicated IP address: If your VPN provider doesn't unblock DraftKings, their IP address pools may be blacklisted. Most VPN providers use...

Last updated Dec 27, 2019

Promotion

Pivot from Ads to No Ads At the end of 2014, they decided to completely revamp Dream11. Dream11 => Version 1 - Ads Version 1 of Dream11 was a chaotic mess. You see the app was completely free to use and the team primarily made money by running ads and promotions. But, apart from the Fantasy sports element, Dream11 was no different than any other sports game. Just another fish in the sea! Plus there were a few more problems No incentives - Only the top 4-5 players won any prize. So, there was little incentive for others to play the games. Season-long competitions - You had to draft a team for the entirety of a tournament and commit to playing the same team. Since IPL seasons last 2-3 months, this model required too much commitment on part of the users. Too many features - On top of this, Harsh had gone all out and built a forum, blog, casual games, news, live score and more. The goal was to make Dream11 into a Sports Super App. But, that was a total overreach for a company that doesn't have many users. With these factors in play, the company lost money for the first 3 years. Dream11 => Version 2 - No Ads So, now in version 2, they flipped the entire model upside down. They switched from Free games & Ads => Paid games & No Ads. Sounds counterintuitive, but it worked! They also offloaded all the additional features and completely focused on building a good fantasy game. And finally, they moved to daily competitions instead tournament long games. Lessons: Don't try to solve for all problems at once. Figure the most critical ones & solve for them first. Iterate and solve for the rest in later versions. Unless you realise that the absence of a certain feature has created a bottleneck in business outcome, it is surely an unnecessary feature. They realised that for them to become a successful business, they'll need to attract more users, so they experimented with different incentive models to land on something that now generated them Rs 300+ crores in profits & 130M users! Let's learn more about this model. Minting money through Cricket How does Dream11 work? Well, it's quite simple! Let's consider an IPL match for example. Suppose X wants to enter a contest for the Mumbai Indians vs Chennai Super Kings game. X will then have to enter into a contest which has a specific: Entry fees

Has a team ever went 20 0 NFL?

Apart from the 1972 Dolphins, three NFL teams have completed undefeated and untied regular seasons: the 1934 Chicago Bears, the 1942 Chicago Bears,...

Last updated Feb 18, 2019

Do withdrawals come back?

Post-acute withdrawal symptoms that persist or randomly occur during early recovery can become a risk factor for relapse. The symptoms can be...

Last updated Jan 10, 2021

Promotion

Prize Pool

No. of spots Depending on the contest X enters, their odds of winning will change. The odds are usually around 50% & sometimes even more. Although as the rank decreases, the amount you win also decreases. Once X enters the game, they will have to draft a team of 11 players by selecting players from both MI and CSK. Before the match starts, depending on the actual lineup, X will shuffle around teams and lock in the lineup. Beyond this, X can't do anything. They will be assigned points based on how their players play in the actual game. So, how does Dream11 make money? Well, let's understand this by taking the example of the 2020 IPL season. That year, Dream11 spent Rs 222 crores, to become the title partner of IPL. But, how did they make that money back? The 2020 IPL season had a total of 60 matches. For each of these matches, Dream11 has up to 100 different contests that are a combination of: Different prize money pool => Total amount that's distributed among winners

No. of spots => Maximum number of people who can participate

Entry Fees => This can be as low as Rs 3 or high as Rs 10K Let's say conservatively, 10M people play Dream11 for every match.

And, an average entry fee of Rs 25.

Then, the final money pool has => Rs 250M = Rs 25 crores Now Dream11 optimizes for 100% capacity and keeps the prize pool to be 75% of the total money pool. So, they can take home ~25% commission Total Prize Money => 25 * 75% = ~Rs 18 Cr So, now Dream11 makes 7 Cr in revenue in the duration of just this one match! Since its total spend was Rs 222Cr, it'll take Dream11 => Rs 222 Cr/ Rs 7 Cr = ~32 matches to make the money back!

buildd.co - How Dream11 makes Rs 2554 Cr in revenue & Rs 327 Cr in profits?

Do hackers use C++?

Is C++ used for hacking? C++ is one of the go-to C languages for hackers because it helps them gain low-level access to hardware and processes....

Last updated Jan 18, 2022

Are under 18s allowed in bookies?

However, the answer is no. Children under the age of 18 are not allowed in a betting shop under any circumstances. Today we're going to explain why...

Last updated Apr 4, 2020

Promotion

Why do lowriders jump?

A hydraulic suspension can quickly raise and lower the car, making it hop and jump -- or dance. Some lowrider shows have dancing car contests....

Last updated Jan 31, 2018

Promotion

Can the government track you if you have a VPN?

Police can't track live, encrypted VPN traffic, but if they have a court order, they can go to your ISP (Internet Service Provider) and request...

Last updated Aug 12, 2022