Dream11 finishes its FY22 with a profit of INR 142 crores; despite 165% rise in expenditure 

Dream 11 fantasy gaming

Dream11 was founded in 2008 by Harsh Jain and Bhavit Sheth. Dream11 is one of India’s Biggest Sports Gaming platforms and the platform has more than 140 million users. 

As per the financial statements filed by the company, they earn INR 3841 crores from its operations during FY22.

The company generates its revenue mainly through platform fees they charge the participants of fantasy sports contests. These are accounted as income from gross gaming revenue. The company also made non-operating revenue of INR 224 crores from interest on its current investments.

They also raised funding of $840 million from Alpha Wave, D1 Capital, and a few others in the month of November.

The company has been the sponsor of the IPL (Indian Premier League) for the last 3 editions and roped up a bunch of star cricketers as endorsers for the brand. With this, the advertising and promotional expenses reached a high level. The company spent a huge amount of INR 2158 crores on its advertising in FY22.

In order to keep up with the growth, the company has recruited personnel massively, with this the total expenditure on employee benefits went to INR 497 crores during the financial period.

At the same time, the company has spent an overall amount of INR 1050 crores under a miscellaneous head which covers expenses like information technology, transaction charges, and a few other business expenses. With all these expenses, the total expenditure incurred by the company for FY22 was INR 3762 crores.

With the huge rise in the scale of business and the expenditure, the profits of the company have seen a decline and ended at INR 142 crores.

As per the financial analysis, the company’s ROCE and EBITDA margin stood at 6.08% and 4.60% respectively. It has been observed that the company has spent INR 0.98 for generating a revenue of INR 1.

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