Dream Sports Launches Dream Money App Amid Regulatory Shifts
Dream Sports, parent company of Dream11, has launched Dream Money, a personal money management app offering gold investments, fixed deposits, and expense tracking. This move comes as the company adapts to new online gaming regulations in India, halting paid contests on Dream11 and focusing on free-to-play games. Dream Sports previously ventured into fintech with DreamX, a UPI app, which was later shut down. Despite regulatory challenges, the company reported strong financial performance with a 66% YoY revenue growth in FY23.
*this image is generated using AI for illustrative purposes only.
Dream Sports, the parent company of popular fantasy gaming platform Dream11, is venturing into the fintech space with the launch of Dream Money, a personal money management app. This strategic move comes in the wake of regulatory changes in India's online gaming sector, which have prompted the company to adapt its business model.
New Venture in Personal Finance
Dream Money, currently in its pilot phase, offers a range of financial services to users:
- Gold Investments: Users can invest in gold starting from as low as Rs 10, facilitated through a partnership with Augmont.
- Fixed Deposits: The app allows investments in fixed deposits from Rs 1,000, collaborating with small finance banks and NBFCs via fintech partner Upswing.
- Expense Tracking: An AI advisor named Sigfyn helps users track their spending and investments.
Adapting to Regulatory Changes
The launch of Dream Money appears to be a strategic pivot for Dream Sports, following recent developments in India's online gaming regulations:
- Dream Sports has halted paid contests on its flagship platform, Dream11.
- The company has shifted focus to free-to-play games, aligning with new laws prohibiting money-based online games.
Previous Fintech Endeavors
This isn't Dream Sports' first foray into fintech:
- The company launched DreamX, a UPI (Unified Payments Interface) app, in March 2023.
- However, DreamX was shut down following a directive from the Reserve Bank of India (RBI).
Company Performance
Despite the regulatory challenges, Dream Sports has shown strong financial performance:
- The company was valued at $8 billion in November 2021.
- In FY23, Dream Sports reported a 66% year-on-year revenue growth, reaching Rs 6,384.49 crore.
- Dream11 continues to be the primary revenue generator for the company.
Conclusion
The launch of Dream Money signifies Dream Sports' efforts to diversify its portfolio and explore new revenue streams in the face of changing regulations in the online gaming industry. As the company navigates these shifts, its move into personal finance management could open up new opportunities for growth and user engagement.
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