Dream Sports Inc, parent company of fantasy sports platform Dream11, has shifted its domicile from Delaware, United States, to India in a move often referred to as "reverse flipping", amid compliance requirements.
Dream Sports will be joining a slew of internet firms who have moved their domicile back to India such as PhonePe, Zepto, and Groww. Some other tech companies in the process of reverse flipping include Razorpay, Meesho, Pine Labs, Udaan, and Flipkart.
Through this transaction, the company's board has approved the merger of Dream Sports Inc with Mumbai-based Sporta Technologies Private Limited, as per the company's regulatory filings with the Registrar of Companies, accessed from the startup data firm The Kredible, Moneycontrol reports.
All the shares of Dream Sports Inc. will be transferred to Sporta Technologies Private Limited (Dream11 India) under the amalgamation procedure.
“Dream Sports is leveraging tech to unlock the massive potential of India’s sports ecosystem. We have completed a ‘ghar waapsi’ and are now an Indian domiciled business,” the company said in a statement.
It was further stated that this merger will enable the company “achieve cost savings from more focused operational efforts, lead to consolidation of the group and elimination of intercompany transactions”.
This includes a reduction in overhead costs, including administrative expenses and statutory compliance, as well as improved efficiency. Additionally, it will enable the group to have a streamlined holding structure and 'optimally allocate and utilise resources by avoiding duplication between India and Delaware'. The development was first reported by The Economic Times.
For the financial year FY23, Dream Sports saw its revenue from operations jump 66% to Rs 6,384.49 crore, up from Rs 3,841 crore in FY22. The company has yet to file its financials for FY24, however, sources earlier told Moneycontrol that the firm is expected to witness a revenue drop of 40–50% in the current financial year, while operating profit may decline by about 80%.
Founded in 2008 by Harsh Jain and Bhavit Sheth, Dream Sports was last valued at $8 billion when it secured $840 million in a funding round led by Falcon Edge, DST Global, D1 Capital, Redbird Capital, Tiger Global, TPG and Footpath Ventures in November 2021.
Apart from Dream11, the company houses brands such as sports content and commerce platform FanCode, sports experiences platform DreamSetGo, mobile game development unit Dream Game Studios, and its philanthropic arm Dream Sports Foundation.
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