MAM
Dream11’s Harsh Jain-speak on the fantasy games leap
NEW DELHI: Fantasy sports platform Dream11 hit the headlines in early August when its bid of Rs 220 crore for the title sponsorship of the Indian Premier League (IPL) 2020 came out tops, beating back the offers from larger firms. And it polevaulted its founders Harsh Jain and Bhavit Sheth into the limelight once again.
Set up by the duo in 2008, the Mumbai-based company has more than 80 million users and is the first gaming startup from India to attain unicorn status, an industry term for startups valued above Rs 6,500 crore ($1 billion).
With an array of top-notch investment firms across the globe, including Kalaari Capital, Multiples Equity, Tencent Holdings and Steadview Capital Management, Dream11 is one of the most stable and thriving start-up ecosystems. Dream11 has expanded its offerings with Fancode, DreamX, Dream Sports Investments, Dream Sports Foundation, DreamSetGo, and DreamPay.
According to various media reports, the company spent Rs 785.08 crore on advertising and promotions during FY19, as against Rs 230.30 crore in FY18.
Speaking at the Internet and Mobile Association of India’s (IAMAI’s) Marketing Conclave on 28 August, Jain explained why he chose to put Dream11’s hat in the IPL title sponsorship ring. "IPL will break all records this year as one billion people stuck at home due to pandemic will definitely watch the sporting event. Our successful associations with IPL in the past gave us courage too,” he said.
With the Dream11 brand being hammered home all through the tournament, it’s quite likely that an additional few million might chose to download the app and get engaged with the fascinating opportunity to play the skill based matches. Of course, the app would further get embedded into young and old India’s minds.
During his address, Jain highlighted the need to focus on product development more than on marketing. “I see a lot of products today which use marketing right from the start. I believe it is the wrong thing to do,” he pointed out. “First, you need to develop a product fit for the market and once it is achieved, you should then go for scaling it.”
Jain explained that in 2008 when IPL was launched in India, it did so without any fantasy games. But today most sports in India cannot be imagined without a fantasy game element. Then there were the naysayers who dissuaded Jain, whose father Anand is a close associate of ace entrepreneur Mukesh Ambani, from foraying into the space when he returned to India after his education in the US.
"All marketing pundits told us that fantasy games won’t bloom in India and it will be a complete failure, but we succeeded. It was during this time when Sheth (currently serving as a co-founder & COO) joined me in this journey," Harsh elaborated.
The initial three years were tough. The company suffered a cash crunch and other obstacles, but what kept them going was their digital agency, Red Digital, which managed social media accounts for Discovery Networks, Reliance Foundation, and Mumbai Indians to name a few. By 2012, the company had decided to go ahead with the freemium single match business.
“Indian consumers don’t like to commit long term to certain products, they like instant gratification and high engagement.Since the time we have focused on organic reach, growth hacking, and targeted digital marketing . We focused on things like virality and getting users to invite their friends,” Jain shared.
In 2014, the company reported a million registered users, which grew to 45 million in 2018. Last year, the company reported having more than a 80 million user base.
Jain admitted, "From 2017 we started partnering with leagues and signed Harsha Bhogle as our first brand ambassador. In 2018, we roped in MS Dhoni and started TV advertising for the very first time, and launched the Dimaag Se Dhoni marketing campaign during the IPL 2018 ."
Like any other brand, Dream11 faced hurdles in its growth journey, and the biggest challenge was not being available on Google Play store, a hurdle they surmounted.
“It has been a difficult journey to convince people to download our apps as an APK and answer questions about why we are not on play store. But if people find value, they will find it," Jain said.
According to the 2019 report published by the Indian Federation of Sports Gaming (IFSG) and KPMG, the number of fantasy sports operators saw 7x growth during 2016-2018, while the number of users grew by over 25x between June 2016 and February 2019.
The report also pointed out that the overall revenue of fantasy sports in India saw a three-fold growth from Rs 920 crore in FY19 to Rs 2,470 crore in FY20. As per IFSG-KPMG report, Dream11 commands 90 per cent market share.
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Why Traditional Business Loans Are Harder for Start-ups
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The vintage requirement is not arbitrary. Businesses that have survived their first two operating cycles demonstrate market viability, which significantly lowers the lender’s risk. Until this milestone is reached, entrepreneurs often rely on bootstrapping, personal savings, or alternative financing to build a stable business foundation. Understanding this reality helps first-time entrepreneurs set practical expectations when seeking funding.
Government-Linked Schemes for Startups
India offers several government-backed schemes to support first-time entrepreneurs. One such scheme is the Pradhan Mantri Mudra Yojana (PMMY), which provides collateral-free loans for micro and small enterprises in three categories:
● Shishu: up to Rs. 50,000
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Using Personal Loans to Fund Early-Stage Needs
When business loan eligibility is not yet established, a personal loan can serve as bridge funding. These loans are assessed on the individual’s credit profile and income rather than the business’s financial history, making them accessible to salaried individuals or those with a strong personal credit record.
Personal loans have limitations: the loan amount is capped based on personal income, and the interest rate is typically higher than secured business loans. Nevertheless, taking out a personal loan during the first 12 to 18 months can provide crucial support as the start-up builds its financial profile. It is especially useful for covering immediate expenses such as inventory, marketing, or office setup costs.
Alternative Financing Options for Startups
For start-ups that are not yet eligible for traditional business loans, other financing options are available through financial institutions. Many lenders offer startup-focused or small-business loans designed for early-stage businesses. These loans evaluate the entrepreneur’s personal credit profile, business plan, and projected revenue rather than relying solely on business vintage. Financial institutions such as Tata Capital provide these loans with minimal documentation and fast disbursal, enabling entrepreneurs to manage operational expenses, purchase equipment, or fund early growth initiatives without pledging collateral.
Some lenders also offer flexible loan amounts, quicker approvals, and streamlined processes, making them well-suited for first-time entrepreneurs. Exploring these options early allows start-ups to access working capital while gradually building a credit history that will support larger loans in the future.
Building the Right Financial Profile Before Applying
For entrepreneurs planning to apply for a business loan in 12 to 18 months, the preparation period is critical. Key steps include:
● Filing Income Tax Returns (ITRs) consistently and accurately from the first year
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Lenders assess start-ups by examining these signals. Entrepreneurs who maintain financial discipline from the start will have stronger loan applications after two years. Additionally, tracking cash flow and avoiding irregular withdrawals can further enhance the business’s credibility.
Collateral-Based Options for Larger Requirements
Startups requiring larger amounts beyond government schemes can consider loans against property. These loans allow entrepreneurs to access larger amounts of funding at lower interest rates, as the property secures the lender’s risk.
This option carries significant risk: using personal or family assets as collateral can result in a loss if the business does not perform as expected. Such loans should be considered only when the business plan is validated, the entrepreneur has clear cash flow projections, and the repayment strategy is realistic. Careful assessment of risk versus reward is essential before pledging assets.
Practical Steps to Strengthen Your Loan Application
To maximise the chances of approval, entrepreneurs should:
● Maintain accurate financial statements, bank records, and GST returns.
● Avoid over-borrowing; apply for realistic amounts that match business needs.
● Keep personal and business credit profiles in good standing.
● Explore lenders that offer startup-friendly products.
● Be transparent and complete in all documentation.
Taking these steps early ensures a smoother and faster loan process when the business is ready for formal financing. A well-prepared application reduces processing delays and demonstrates professionalism to the lender.
Conclusion
First-time entrepreneurs often face a funding gap in the early stages, but it is usually smaller than it appears. Maintaining clean banking records, filing ITRs consistently, and exploring personal loans, government schemes, and alternative financing options help build a strong financial profile. Entrepreneurs who plan systematically from day one are better positioned to access formal credit sooner, giving their start-ups financial stability through small business loans.
The ideal time to start building a credit-worthy business profile is the very first month of operations, not when applying for a loan. By understanding available funding options and acting proactively, first-time entrepreneurs can confidently apply for a business loan and set their businesses on a path to long-term growth.
