It’s a Knockout Punch, Lost 95% Revenue & 100% Profits: Dream11 CEO on Real Money-Gaming Ban
In a candid interview, Harsh Jain, Co-Founder and CEO of Dream11, opened up about the devastating impact of the government’s ban on real-money gaming on the company’s revenue and profits. Despite the significant losses, Jain remains optimistic about the company’s future, saying he’s a “delusional optimist”. In this blog post, we’ll delve into Jain’s thoughts on the ban and the company’s plans to move forward.
The ban on real-money gaming, which took effect in September 2020, has had a profound impact on Dream11’s business model. Jain revealed that 95% of the company’s revenue and 100% of its profits were generated from its real-money gaming business. The sudden loss of this revenue stream has left the company reeling, but Jain is determined to find a way forward.
“It’s a knockout punch,” Jain said, referring to the government’s ban. “But, I’m a delusional optimist. We’re going to work on the future. But yes, 95% of our group’s revenue and basically 100% of our profit was coming from Dream11’s current business model.”
Dream11’s business model was built around fantasy sports, where users would create virtual teams and compete against each other. The company generated revenue through a combination of subscription fees, advertising, and sponsorships. However, with the ban on real-money gaming, the company’s primary revenue stream has been severely impacted.
Despite the challenges, Jain remains committed to finding a way to adapt to the new landscape. “We’re not going to let this stop us,” he said. “We’re going to work on building a new business model, a new product, and a new service that’s legal and compliant with the regulations.”
Dream11 has already started exploring alternative revenue streams, including free-to-play games and e-sports. The company is also looking to expand its presence in international markets, where the gaming industry is more mature and less regulated.
However, Jain acknowledges that it will take time to recover from the losses and rebuild the company’s business. “We’re going to have to go through some tough times, but we’re not going to give up,” he said. “We’re going to keep working, and we’re going to come out stronger on the other side.”
The ban on real-money gaming has sent shockwaves through the Indian gaming industry, and many companies are struggling to adapt. However, Jain believes that the ban presents an opportunity for the industry to innovate and evolve.
“I think this is a chance for us to rethink our business model and come up with something better,” he said. “We can’t just sit back and wait for things to get back to normal. We have to be proactive and think about the future.”
In conclusion, the ban on real-money gaming has dealt a significant blow to Dream11’s business, but the company’s CEO remains optimistic about the future. With a commitment to innovation and a willingness to adapt, Dream11 is likely to emerge from this challenging period stronger and more resilient than ever.
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