Dream Sports, the parent company of Dream11, is in talks with investment banks for a US listing by early 2022, joining the league of Indian tech unicorns eyeing overseas listings.

It is speculated that Dream Sports may raise about $1.5 billion through this listing, valuing the company at $6 billion, an almost 40% increase from the funding round that concluded in March 2021. 

Investment banks like JP Morgan, Morgan Stanley, and Citigroup are among those that made presentations to them earlier this month. No firm initial public offering (IPO) mandate has been decided yet. There are indications that Dream Sports will tap a listing via a blank cheque company, or a special purpose acquisition company (SPAC), for listing in the USA market. Co-founder of Dream Sports, Harish Jain is a board member of Think Elevation Capital Growth Opportunities, a SPAC launched by Shashin Shah and Ravi Adusumalli and focused on Indian tech companies seeking to list themselves in the US.

The planned listing will involve both a primary and secondary sale of shares. Dream Sports raised $400 million last month from tech investors including TCV, D1 Capital Partners, and Falcon Edge, while existing investors Tiger Global, ChrysCapital, TPG Growth, Footpath Ventures, and Steadview Capital also participated. The investment increased the company’s valuation to $3.6 Billion presently from $2.5 billion in September 2020, when it secured $225 million in funding from Tiger Global, ChrysCapital, and TPG Tech Adjacencies. 

All investors, including early investors such as Kalaari Capital and Multiples Alternate Asset Management, together hold about 80% stake in Dream Sports. Set up in 2008, the sports technology company became the first Indian gaming start-up to enter the unicorn club and has raised about $720 million so far. Dream11 generated revenue of INR 775 crores in 2019, way more than INR 224 crores in 2018.