The fintech app of Dream Sports, the parent of Dream11, is still in the beta phase and is open to only a select few users
DreamX is backed by the UPI and the Bharat Bill Payment System
Dream Sports has partnered with payments solution provider Pine Labs, which has a PPI licence, to unveil the offering
The app is still in the beta phase and is open to only a select few users as part of the early access programme. Backed by the Unified Payments Interface (UPI) and the Bharat Bill Payment System (BBPS), the new platform will allow users to send money, pay utility bills and spend online.
However, the app is still listed on Google Play Store and Apple’s App Store for users. While the company already offers payment solutions for online merchants, the move will enable Dream11 to roll out the payments services for all its customers.
Dream Sports will look to leverage the large user base of Dream11 – almost 160 Mn active users at the end of December 2022 – to drive the fintech vertical. Besides, the launch could also be an effort to shore up the avenues of Dream11 users to spend their winnings.
As per Moneycontrol, Dream Sports has partnered with payments solution provider Pine Labs, which owns prepaid payment instrument (PPI) licence, to unveil the offering.
The fintech app claims it will offer ‘rewards’ and showcase offers from Dream11’s other sister companies.
Dream Sports is an umbrella company for multiple platforms, including sports content and commerce platform Fancode, sports experiences platform DreamSetGo, and cricket-focused digital collectibles startup Rario.
With this, Dream Sports will effectively take on giants such as PhonePe and Google Pay in the fintech arena. Dream Sports could also be looking at directly catering to Dream11 customers and cutting the middleman payment platforms from in between.
The move especially holds significance as the National Payments Council of India (NPCI) recently said that UPI transactions above INR 2,000 made through PPIs to merchants will attract an interchange fee of 1.1%.
The announcement comes at a time when Dream Sports has been looking to strengthen its standing in the fantasy gaming space and scale its offerings. While the company plans to scale investments in sports and gaming startups, growing competition has hit its margins to an extent.
In FY22, Dream11’s net profit more than halved to INR 141.97 Cr as expenses surged. However, revenue soared 1.5X year-on-year (YoY) to INR 3,840.7 Cr.
Dream11 competes with other gaming unicorns such as Games24X7 and Mobile Premier League.
While the fantasy gaming space is fraught with regulatory challenges, Dream11 is well placed to leverage the growing Indian gaming industry. While the Indian gaming market is estimated to reach a size of $8.6 Bn by FY27, the homegrown fintech market presents a $2.1 Tn opportunity for startups by 2030.
The payments platform was launched ahead of the start of the 16th edition of the Indian Premier League. Dream11 witnesses a big surge in active and new users during the IPL as more and more people flock to the platform during the cricket season. It is this standing that Dream Sports is looking to leverage to push its payments app.