Dream11 Enters Fintech Space, Takes on PhonePe and Google Pay with UPI Payments App Launch

by James · April 3, 2023

News update

OfStartupStory | 3 April 2023

Dream Sports, the parent company of fantasy gaming unicorn Dream11, has entered the fintech market by launching its mobile payment app, DreamX. The app is currently in beta and is only available to a select group of users as part of the early access program. With the support of Unified Payments Interface (UPI) and Bharat Bill Payment System (BBPS), DreamX allows users to transfer money, pay utility bills and make purchases online.

Despite being in beta, Dream Sports has made its mobile payment app, DreamX, available to users via the Google Play Store and Apple’s App Store. The company, which already provides payment solutions for online stores, plans to use DreamX to provide payment services to all its customers, including the large user base of nearly 160 million active users of Dream11 as of December 2022. Dream Sports aims to capitalize on Dream11’s popularity to run their fintech business. Additionally, the launch of DreamX could be an attempt to give Dream11 users more ways to spend their winnings.

In partnership with Pine Labs, a payment solutions provider with a prepaid payment instrument (PPI) license, Dream Sports has launched its fintech app, DreamX. The app promises to provide rewards and display offers from Dream11’s other sister companies. Dream Sports is an umbrella company that includes various platforms such as Fancode, a sports content and commerce platform, DreamSetGo, a sports experience platform, and Rario, a cricket-focused digital collectibles startup. With this launch, Dream Sports enters the competitive fintech market and can compete with industry giants such as PhonePe and Google Pay. In addition, Dream Sports may seek to serve Dream11 customers directly by eliminating intermediate payment platforms.

Dream Sports’ foray into the fintech industry has particular significance, given the recent announcement by the National Payments Council of India (NPCI) that merchants will be charged a 1.1% interchange fee for UPI transactions above INR 2,000 made via prepaid payment instruments ( PPIs). ). This development coincides with Dream Sports’ efforts to strengthen its position in the fantasy gaming sector and expand its offerings. Despite the company’s intention to increase investment in sports and gaming startups, increasing competition has affected margins to some extent.

Dream11’s FY22 net profit fell by over 50% to INR 141.97 Cr due to increased expenses, even as revenue grew significantly by 1.5x YoY to INR 3,840.7 Cr. Dream11 competes with other gaming unicorns such as Games24X7 and Mobile Premier League in the fantasy gaming space, which presents regulatory challenges. However, Dream11 is well positioned to benefit from the growth of the Indian gaming industry, which is estimated to reach $8.6 billion by FY27.

Moreover, the homegrown fintech market presents a $2.1Tn opportunity for startups by 2030. Dream Sports launched its payment platform, DreamX, before the 16th.th edition of the Indian Premier League, which typically sees an increase in active and new users on the Dream11 platform during the cricket season. Dream Sports aims to leverage Dream11’s popularity to promote its payment app.

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