Dream11 is living its Dream
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IPL 2020 is happening!
You would have probably heard who's replacing the Chinese company Vivo as the Title Sponsor of IPL for 2020? 🏆
For whom it makes the MOST sense, since their entire business model is around Fantasy Sport - the behemoth Dream11
Over 10 years, Dream11 built the Online Fantasy Sports (OFS) category from scratch in India and today, Dream 11 is the largest and most recognized OFS player with over 70M users (a little more than 75% of the users of all other OFS players combined)
But the decade long journey wasn't easy - OFS is considered as a form of betting by many states, Google doesn't allow mobile apps offering cash contests on the Play Store, and there are over 100 such OFS apps today. So how did Dream11 overcome all these challenges? The biggest factor that worked to Dream11's advantage is the network effects baked into its model (remember we talked about Network Effects in our post on Moats?) - Value of Dream 11 increases as more users join it. That's because more users mean a larger number of participants in contests. And a larger number of contest participants means larger prize sizes. A chance to win larger prize sizes makes Dream11 more attractive to a user than other OFS platforms.
To know more about how Dream11's business model -
https://simplanations.substack.com/p/8-how-did-dream11-become-indias-first
https://ajuniorvc.com/dream11-fantasy-unicorn-dhoni/
P.S. The founder of Dream11, Harsh Jain, is the son of Anand Jain, right hand man of Mukesh Ambani. Despite being the son of one of India's richest individuals, Harsh never mentioned his family lineage and wanted to make Dream11 a successful company on his own. He hustled for years, running around trying to raise couple of million dollars for his startup, when he could have easily asked his dad to write him a big cheque. Amazing story of his perseverance as an entrepreneur