It’s a Knockout Punch, Lost 95% Revenue & 100% Profits: Dream11 CEO on Real Money-Gaming Ban
The Indian government’s sudden ban on real-money gaming in September 2021 sent shockwaves throughout the industry, with many companies reeling from the unforeseen consequences. One such company is Dream11, a popular online fantasy sports platform, which has been at the forefront of the real-money gaming sector. In an exclusive interview with Moneycontrol, Dream11 Co-Founder and CEO Harsh Jain shared his thoughts on the ban and the company’s future prospects.
A Knockout Punch
Describing the government’s ban as a “knockout punch,” Jain acknowledged the devastating impact it has had on the company’s revenue and profits. “We’re going to work on the future,” he said, “But yes, 95% of our group’s revenue…and basically 100% of…profit was coming from Dream11’s current business model.” The loss of revenue and profit is staggering, and it’s no wonder that Jain described the ban as a “knockout punch.”
However, despite the dire situation, Jain remains optimistic about the company’s future prospects. As he put it, “I’m still a delusional optimist.” This optimism stems from the company’s ability to adapt and pivot in the face of adversity. Jain believes that Dream11 can still thrive by focusing on its core strengths and exploring new opportunities.
A Business Model Built on Real-Money Gaming
Dream11’s business model is built around real-money gaming, which has been the primary source of revenue and profit for the company. The platform allows users to create teams of real-life players and compete against each other for cash prizes. The company’s success can be attributed to its user-friendly interface, attractive prizes, and strategic marketing efforts.
However, the government’s ban on real-money gaming has put a significant dent in the company’s financials. Jain acknowledged that the ban has resulted in a significant loss of revenue and profit, but he remains confident that the company can still find ways to generate income.
Exploring New Opportunities
While real-money gaming will no longer be a part of Dream11’s business model, the company is exploring new opportunities to diversify its revenue streams. Jain mentioned that the company is working on new products and services that can help it stay competitive in the market.
One such initiative is the company’s foray into the e-sports segment. Jain believes that e-sports has a massive potential in India and that Dream11 can leverage its expertise in real-money gaming to create a successful e-sports platform.
A Delusional Optimist
Jain’s optimism is not misplaced. Despite the challenges posed by the ban, Dream11 has a strong brand presence and a loyal user base. The company’s ability to adapt and pivot in the face of adversity will be crucial in determining its future success.
In conclusion, while the government’s ban on real-money gaming has dealt a significant blow to Dream11’s revenue and profit, the company’s CEO remains confident about its future prospects. With its ability to adapt and explore new opportunities, Dream11 is well-positioned to bounce back from the setback and continue to thrive in the Indian market.
