FANCODE, the digital sports platform owned by Dream11 parent company Dream Sports, on Thursday announced that it will shut down its sports merchandise business, FanCode Shop, by October.
The decision to close FanCode Shop had been made in June and was in no way linked to the business model pivot that Dream Sports was making in the wake of the recent ban on real money gaming, the company clarified. FanCode stated that it now wants to focus entirely on strengthening its core sports content business.
“… This will help us focus on what’s growing fastest and delivering the most value to our users. FanCode Shop will continue running till October and we will fulfill all orders placed during that time…” the company statement quotes a FanCode spokesperson as having said.
The development was first reported by Economic Times. The business daily said in its report that the merchandise business was struggling with persistent viability issues and the unchecked circulation of counterfeit products, both of which have severely limited growth prospects.
“At FanCode, we’ve always taken pride in building for sports fans. This will help us focus on what’s growing fastest and delivering the most value to our users,” the spokesperson said.
“FanCode Shop will continue running till October and we will fulfil all orders placed during that time,” the spokesperson added.
The development comes just days after Dream Sports discontinued all paid contests on its flagship fantasy platform Dream11.
Dream11 has now shifted completely to free-to-play online social games after India’s new online gaming law banned money-based games where users deposit funds with the hope of winning returns.
Currently, about 95% of Dream Sports’ revenues and all of its profits come from cash-based contests.
Launched in August 2020, FanCode Shop offered official sports merchandise such as jerseys, T-shirts, hoodies, footwear, accessories, and even home furnishings.
Over the years, it has tied up with several major sports brands and tournaments, including IPL franchises, ICC cricket events, international football clubs, and racing competitions.
With this shift, FanCode is betting on its content platform as the main driver of growth, while winding down its merchandise business after four years of operations.
