This new Southeast Asian fund has its eye on Chinese cross-border firms

As U.S.-China relations remain tense, Southeast Asia becomes the darling for investors and tech companies from both sides as they seek overseas expansion. Behemoths like Google, Facebook, Alibaba, Tencent and ByteDance have elbowed into the region. Some set up shop, while others formed alliances and took stakes in local startups.

Now five prominent investors originating from the region are ready to claim their slice of the market. Singapore-based Altara Ventures debuted this week with a goal to raise over $100 million for its first fund focused on early-stage tech startups in Southeast Asia, with an eye on those with ties to China.

The financial vehicle was co-founded by Dave Ng, former head of Eight Roads Ventures, the investment arm of Fidelity International, along with four other general partners. They are Koh Boon Hwee, former chairman of DBS Group and Singapore Telecommunications; Tan Chow Boon and Seow Kiat Wang, who, along with Hwee, co-founded Omni Industries (bought by Celestica) and later managed private equity investments together; and Gavin Teo, a former product manager at Xbox and Zynga and a colleague of Ng at B Capital, a fund started by Facebook co-founder Eduardo Saverin.

Altara derives from the English word “altitude” and the Bahasa word “nusantara”, the historical designation for maritime Southeast Asia, a coinage that captures the firm’s ambition to back early-stage startups concurrent with the region’s technological advancement. The firm considers sectors ranging from fintech, consumer, enterprise software, logistics, healthcare through to education.

What happened in the Chinese internet realm has become a source of inspiration for entrepreneurs in its neighboring countries, and ideas flow from China into Southeast Asia in various ways.

“The first is around Chinese founders bringing their expertise from what they have done and gained in China to Southeast Asia as a new market. This could be totally new startups that they cofound with Southeast Asian entrepreneurs, and together they tackle whitespace opportunities here,” Ng explained to TechCrunch.

“We have also seen Chinese entrepreneurs who were first posted to the Southeast Asian region under tech giants such as Alibaba and Lazada, Ant Financials and etc coming out to start up on their own.”

The second type is what particularly interests Altara, for Ng believed the fund can “back and contribute our experience, expertise and network in Southeast Asia to them.”

What’s more, the investor is bullish on the future of the Southeast Asian tech industry as the U.S. and China enter “a phase of bifurcation.”

“We think Southeast Asia will benefit from its position as the connector of East and West. Over the next 10 to 20 years, we will see more talent and capital coming into the region.”

The eSIM maker powering Xiaomi’s IoT devices raises $15M

Connectivity is vital to a future managed and shaped by smart hardware, and Chinese startup Showmac Tech is proposing eSIMs as the infrastructure solution for seamless and stable communication between devices and the service providers behind.

Xiaomi accepted the proposition and doled out an investment for the startup’s angel round in 2017. Now Showmac has convinced more investors to be onboard as it banked close to 100 million yuan ($15 million) in a Series A+ round led by Addor Capital with participation from GGV Capital and Hongtai Aplus.

“We believe cellular communication will become a mainstream trend in the era of IoT. WiFi works only when it’s connected to a small number of devices, but when the number increases dramatically it becomes unreliable,” said Lily Liu, founder and chief executive of Showmac, during an interview with TechCrunch.

Unlike a traditional SIM, short for “subscriber identity module,” an eSIM doesn’t need to be on a removable card, doing away the need for the SIM card slot on a device. Rather, it will be welded onto the device’s integrated chip during assembly and is valid for different network operators. To chipmakers, Showmac’s eSIM functions like an application or software development kit (SDK), Liu observed.

The company began as a pilot project supplying eSIMs to Xiaomi’s ecosystem of connected devices and subsequently set up an entity when the solution proved its viability. Its core products today include eSIM cards for IoT devices, eSIM communication module and gateway, and connection management software as a service.

To date, Showmac has powered more than 10 million devices, around 30% of which are affiliated with Xiaomi, which through in-house development and external investments has constructed an empire of IoT partners reliant on its operating system and consumer reach.

The majority of Showmac’s clients are providers of shared goods, those of which “ownership and right to use are separate”, explained Liu, who earned a PhD in economics from China’s prestigious Huazhong University of Science and Technology. Shared bikes and Luckin’s shared coffee mugs are just a few examples.

Showmac is hardly a forerunner in the global eSIM space, but the founder believed few competitors could match it on the level of supply chain resources, thanks to its ties with Xiaomi.

“As an R&D-oriented and relatively young team, we are very fortunate to have experienced large-scale industrial activity that churns out products in the hundreds of thousands and even millions every day. [Xiaomi] has provided us with this precious opportunity,” the founder said.

With a staff of 40-50 employees across Beijing and Shenzhen, the startup is currently focusing on the Chinese market but has plans for overseas expansion in the long run.

“We are not the first to make eSIM in the world, but being in China, the center of the world’s electronics manufacturing, we are in a superior position to get things done,” suggested Liu.

The arrival of 5G is a boon to the startup, the founder believed. “5G will spurn more IoT devices and applications, giving rise to the need for IoT [devices] with cross-carrier and cross-region capabilities,” she said.

Showmac says it will spend its newly raised capital on mass-producing its integrated eSIM modules, research and development, and business development.

India’s ShareChat raises $40 million, says its short-video platform Moj now reaches 80 million users

ShareChat, an Indian social network that focuses entirely on serving users in non-English languages, said on Thursday it has raised $40 million from a clutch of investors after the Indian startup added tens of millions of new users in recent months.

The five-year-old Bangalore-based startup said Dr. Pawan Munjal, chief executive and chairman of giant two-wheeler manufacturer Hero MotoCorp, Ajay Shridhar Shriram, chairman of chemical manufacturing company DCM Shriram, and existing investors Twitter, SAIF Partners, Lightspeed Ventures, and India Quotient financed the new round of capital.

Ankush Sachdeva, co-founder and chief executive of ShareChat, told TechCrunch in an interview that the startup’s new fundraise is part of its pre-Series E financing round. TechCrunch understands the startup is engaging with several major VC funds and corporate giants to raise more than $100 million in the next few months.

The new capital will help ShareChat better support creators on its platform, Sachdeva said. ShareChat launched the short-video app Moj in early July, days after New Delhi banned TikTok, which at the time had about 200 million users in India.

In the weeks following TikTok’s ban in India, scores of startups have launched short-video apps in the country. DailyHunt has launched Josh, and Times Internet’s MX Player has launched TakaTak. But Moj has clearly established dominance1 among short-form video apps.

ShareChat said Moj has amassed over 80 million monthly active users, who are spending about 34 minutes on the platform each day.

ShareChat’s marquee and eponymous app, which caters users in 15 Indian languages, itself has grown significantly. The app has amassed 160 million monthly active users 2, up from 60 million during the same period last year. A user on an average spends about 31 minutes on the app each day, the startup said.

The growth of ShareChat in the social media category is a rare success story for the Indian startup ecosystem.

“India could never have dreamt of having a homegrown social media platform, had ShareChat not embarked on the impossible in 2015. ShareChat’s success has given immense hope to India’s startup fraternity, and motivated entrepreneurs to take audacious bets in India’s internet ecosystem,” said Madhukar Sinha, Partner at India Quotient, one of the earliest backers of ShareChat.

In yet another move that is not very common among Indian startups, ShareChat announced earlier this week that it was adding $14 million to its employee stock ownership plan (ESOP) pool, taking the total to $35 million.

Sachdeva told TechCrunch that for a startup of ShareChat’s scale, it is crucial that its employees feel valued, because there are enough other giants in the market looking for their talent.

The new capital will also help the startup build new products and establish deeper partnerships with music labels, Sachdeva said. TechCrunch reported earlier this year that ShareChat had quietly launched a fantasy sports app called Jeet11.

Sachdeva said Jeet11 is gaining good traction and the startup’s foray into fantasy sports and short-video app categories demonstrates how fast it moves.

ShareChat has also been working with advertisers as it solidifies its monetization avenues, he said.

More to follow…


1 Instagram reaches about 150 million monthly active users in India, but it’s unclear if more than half of the app’s userbase has embraced Reels yet.

2  Many players in the industry rely on mobile insight firm AppAnnie and Sensor Tower to track the performance of their apps, their portfolio startups’ apps, and those of their competitors. We often cite AppAnnie and Sensor Tower data, too.

According to AppAnnie, ShareChat had fewer than 20 million monthly active users in India last month. Startup founders and other tech executives who TechCrunch has spoken to say that AppAnnie’s data is usually very reliable, and I can tell you that most of the figures companies claim publicly match with what you see on AppAnnie’s dashboard.

But another thing I have heard from many startup founders is that AppAnnie’s data often misses the mark for apps that have a significant portion of their user base in smaller cities and towns — as is the case with ShareChat.

I asked Sachdeva about it, and he said that ShareChat and many other apps that are popular in smaller Indian cities have not integrated AppAnnie’s SDK into their apps. AppAnnie relies on developers integrating its SDK into their apps to be able to assess the performance of that app and others installed on the handset.

This would explain why AppAnnie estimates that WhatsApp, which claims to have over 400 million users in India and is also popular among users in smaller Indian cities and towns and villages, has about 330 million users.

The contrast between the numbers ShareChat has officially shared and what one of the most reliable and widely used third-party firms offers was too significant, and I thought I should mention this. AppAnnie did not share ShareChat’s figure with TechCrunch — an industry executive did.

Endel raises $5M to create personalized ‘sound environments’ that improve productivity and sleep

The pitch for Berlin-based Endel is pretty straightforward, according to its co-founder and CEO Oleg Stavitsky.

“The way I usually describe Endel is: This is a technology that is built to help you focus, relax and sleep,” Stavitsky told me. “Of course, the way we do that is a little more complicated than that.”

The startup is announcing today that it has raised $5 million in Series A funding led by Kevin Rose of True Ventures, with participation from SleepScore Ventures, Techstars Ventures (Endel was part of the Techstars Music Accelerator), Impulse Ventures, Plus 8 Equity Partners, Waverley Capital, Amazon Alexa Fund, Target Global and various angel investors.

Stavitsky said that the team prevously worked together on children’s app company Bubl. After selling Bubl, Stavitsky said they began to explore the opportunities around sound — after all, he noticed the growth of playlists designed to help with things like sleep and focus, as well as the growth in mindfulness apps.

“When we started, we said, ‘Let’s just build this machine that can generate ambient music,'” he recalled. But he said that as the team did more research, they realized, “It has to be personalized. It cannot just be one song or one playlist or one soundscape. It really depends on the space you’re in.”

So that’s essentially what Endel has built. The startup says its Endel Pacific technology creates “sound environments” designed for your needs — whether that’s focusing, sleeping, relaxing or just when you’re on-the-go. Those environments are shaped, in part, by things like the time of day and the weather, as well as the user’s heart rate and motion.

Endel ecosystem

Image Credits: Endel

Rose said he was excited by “this idea of the closed loop system that uses real-time feedback to manipulate and change the body in a very positive way.” And he emphasized that Endel is “backed by science.”

Stavitsky said Endel’s approach draws a several areas of science, including research around circadian rhythms (so that it complements where you are in your daily sleep cycle), the pentatonic scale (so that its sounds are pleasant) and sound masking (so that you’re less likely to hear anything distracting).

The company is working with partners to do more to validate the science behind its approach, but it says it’s already applied the experience sampling method developed by psychologist Mihaly Csikszentmihalyi (who developed and wrote the book on the concept of flow) to show that its sound environments can lead to a 6.3x increase in concentration and a 3.6x decrease in anxiety.

I tried it out myself, listening to Endel’s mix of soothing music and white noise as I working yesterday (including, of course, as I was writing this post). I won’t claim that I felt a dramatic increase in energy or focus, but as time went on, I noticed was working for a longer period of time than I normally do without getting distracted.

Oleg Stavitsky

Endel CEO Oleg Stavitsky

The startup has released apps for iOS, Apple Watch, macOS, Amazon Alexa, and Android, and it has been downloaded nearly 2 million times. A subscription costs $29.99 per year.

Stavitsky said Endel is also building a significant business around partnerships, for example by working with Japan’s ANA Airlines to feature its technology on planes, and there are supposedly deals with automakers and smart speaker manufacturers as well.

The startup has also signed a deal with Warner Music to algorithmically create songs and albums. Stavitsky said he’s hoping to do more work with musicians, so that when they release new music, there can be a traditional album but also “a functional, adaptive album that is available to you as a soundscape when you have to work, when you want to go to sleep.”

“The big vision is to ultimately go beyond sound,” he added — starting with an Apple TV app due later this year that incorporates video.

Endel has now raised a total of $7.1 million.

Apple partner Servify raises $23 million to scale its devices after-sales and management platform overseas

Servify, a Mumbai-headquartered startup that operates a device lifecycle management platform and works deeply with brands including Apple and Samsung in a number of geographies, has raised $23 million in a new financing round.

The Series C financing round for the five-year-old startup was led by existing investor Iron Pillar, and other existing investors including Blume Ventures, Beenext, and Tetrao SPF participated in the round. The new round pushes Servify’s to-date raise to $48 million.

Servify works with enterprises such as Apple, Samsung, OnePlus, Xiaomi, Nokia, Motorola, and Airtel and handles after-sales services such as device protection, exchange, and trade-in programs for its partners, explained Sreevathsa Prabhakar, founder and chief executive of the startup, in an interview with TechCrunch.

The startup, which offers its services through a whitelabel arrangement with enterprises, works with over 50 brands and reaches over 50 markets. With Apple, it works in three geographies, and in over half a dozen with OnePlus .

The new round, which was oversubscribed, will help the startup expand its expertise in many new product categories and deepen its reach in international markets, said Prabhakar, who has more than a decade of experience in overseeing after-sales and other device management businesses.

“We are keenly interested in unique businesses addressing hard problems in very large and global markets and are excited to continue to back the company in its next phase of growth. Stellar execution by Servify’s team combined with its differentiated technology platform have led to the company’s impressive growth this year despite Covid-19 related challenges,” said Anand Prasanna, Managing Partner at Iron Pillar, in a statement.

The coronavirus outbreak has deeply impacted the business of Servify, which was profitable in the financial year that ended in March. The month of April and May, when many countries enforced lockdowns, the startup’s business reached a complete halt. But in the months since, it has not only fully-recovered but grown to new heights, said Prabhakar.

TechCrunch asked Prabhakar if he would ever consider engaging with customers directly. He said the current model of Servify enables it to acquire customers at no charge and he thinks it’s the right model to maintain moving forward.

More to follow…

China’s electric carmaker WM Motor pulls in $1.47 billion Series D

Chinese electric vehicle startup WM Motor just pocketed an outsize investment to fuel growth in a competitive landscape increasingly coveted by foreign rival Tesla. The five-year-old company raised 10 billion yuan ($1.47 billion) in a Series D round, it announced on Tuesday, which will pay for research and development, branding, marketing and expansion of sales channel.

WM Motor, backed by Baidu and Tencent, is one of the highest funded EV startups in China alongside NIO, Xpeng and Li Auto, all of which have gone public in New York. With its latest capital boost, WM Motor could be gearing up for an initial public offering. As Bloomberg’s sources in July said, the company was weighing a listing on China’s Nasdaq-style STAR board as soon as this year.

Days before its funding news, WM Motor unveiled its key partners and suppliers: Qualcomm Snapdragon’s cockpit chips will power the startup’s in-cabin experience; Baidu’s Apollo autonomous driving system will give WM vehicles self-parking capability; Unisplendour, rooted in China’s Tsinghua University, will take care of the hardware side of autonomous driving; and lastly, integrated circuit company Sino IC Leasing will work on “car connectivity” for WM Motor, whatever that term entails.

It’s not uncommon to see the new generation of EV makers seeking external partnerships given their limited experience in manufacturing. WM Motor’s rival Xpeng similarly works with Blackberry, Desay EV and Nvidia to deliver its smart EVs.

WM Motor was founded by automotive veteran Freeman Shen, who previously held executive positions at Volvo, Fiat and Geely in China.

The startup recently announced an ambitious plan for the next 3-5 years to allocate 20 billion yuan ($2.95 billion) and 3,000 engineers to work on 5G-powered smart cockpits, Level-4 driving and other futuristic auto technologies. That’s a big chunk of the startup’s total raise, which is estimated to be north of $3 billion, based on Crunchbase data and its latest funding figure.

Regional governments are often seen rooting for companies partaking in China’s strategic industries such as semiconductors and electric cars. WM Motor’s latest round, for instance, is led by a state-owned investment platform and state-owned carmaker SAIC Motor, both based in Shanghai where the startup’s headquarters resides. The city is also home to Tesla’s Gigafactory where the American giant churns out made-in-China vehicles.

In July, the EV upstart delivered its 30,000th EX5 SUV vehicle, which comes at about $22,000 with state subsidy and features the likes of in-car video streaming and air purification. The company claimed that parents of young children account for nearly 70% of its customers.

A meeting room of one’s own: Three VCs discuss breaking out of big firms to start their own gigs

One of the more salient trends in the tech world — arguably the engine that propels it — has been the recurring theme of people who hone talents at bigger companies and then strike out on their own to found their own startups.

(Some, like Max Levchin, even hire entrepreneurial types intentionally to help perpetuate this cycle and get more proactive teams in place.)

It turns out that trend doesn’t just apply to companies, but also to the investors who back them. At Disrupt we talked with three venture capitalists who have followed that path: Making their names and cutting their teeth at major firms, and now building their own “startup” funds on their own steam.

On the macro level, the whole world has been living through a challenging time this year. But as we’ve seen time and again the wheels have continued to turn in the tech world.

IPOs are returning, products are being rolled out, people are buying a lot online and using the internet to stay connected, there has been a lot of M&A and promising startups are getting funded.

Indeed, if entrepreneurs and their innovations are the engine of the tech world, money is the fuel, and that is the opportunity that Dayna Grayson (formerly of NEA, now founder at Construct Capital), Renata Quintini (formerly at Lux Capital, now founder at Renegade Partners) and Lo Toney (formerly GV, now founder at Plexo Capital) have zeroed in to address.

Grayson said that part of the reason for striking out to start Construct Capital with co-founder Rachel Holt was what they saw as an opportunity to create a firm that specifically funded startups tackling the industrial sector:

“Half the U.S. economy’s GDP, half the GDP of this country, hasn’t really been digitized,” she said. “[Firms] haven’t been tech enabled. They’ve been way under invested … The time is now to build with early stage entrepreneurs.”

While Construct is focusing on a sector, Renegade was founded to focus on something else: The stage of development for a startup, and specific the Series B, which the firm refers to as “supercritical,” essential in terms of getting team and strategy right after a startup is no longer just starting out, but before and leading to scaled growth.

“We saw through our boards over and over again companies that figured out how to scale their organizations, put in the processes,” said Quintini, who co-founded Renegade with Roseanne Wincek. “On the people side, they actually went further and captured a lot more market cap and market share faster. Once we saw this opportunity, we could not let it go.”

She compares the current imperative to really focus on how to build and scale companies at the “supercritical” stage to the focus on early stage funding that typified an earlier period in the development of the startup ecosystem 15 years ago. “You could get a million dollars and be in business, a lot more people could, and you had less time to figure out what really resonated with customers,” she said. “That really gave rise to today.”

Toney has taken yet another approach, focusing not on sector, nor stage, but using capital to help germinate a whole new demographic of founders, the premise being that funding a more diverse and inclusive mix of founders is not just good for creating a more level playing field, but also for the good of more well-rounded products that speak to a wider population of users.

“I was having a great time at GV, but I just saw this opportunity as being one that was too hard to resist,” said Toney of founding Plexo, which invests not just in startups but in funds that are following a similar investment principle to his. Investing in both funds and founders is something GV did as well, but the added ability to turn that into investing with a social imperative was important. “To have this byproduct of increasing diversity and inclusion in the ecosystem [is something] I’m super passionate about,” he said. 

We are living through a time when the tech world seems to be awash in capital. One of the byproducts of having so many successful tech companies has been limited partners rushing in to back more VCs in hopes of also getting some of the spoils: Many firms are closing funds in record times, oversubscribed and that’s having a knock-on effect not just in terms of startups getting funded, but VCs themselves also multiplying with increasing frequency. All three said that the fact that they all identify as more than just “another new VC”, with specific purposes, also makes it easier for them to get themselves noticed to get involved in good deals.

Grayson said that the challenge of starting a firm in the midst of a global pandemic turned out to be a piece of good fortune in disguise in an industry that thrives on the concept of “disruption” (as we at TechCrunch know all too well … ).

“We were really lucky that we started investing in a COVID world,” she said. “So many things have been up ended. And I think, you know, software adoption and technology adoption have been moved up 10-20 years in industry. [And] the way that we work together really has changed.” She also said that they’ve found themselves almost looking for companies “created in a COVID environment,” which indeed would qualify as a battle-tested business model.

In terms of raising funds themselves, Toney also recalled the period when we saw a real surge of VCs emerging to fund companies at the seed stage and the growth of “solo capitalists” around that.

“I think what’s really interesting about solo capitalists is [how] they take their understanding of operations, and a deep network of other technologists, both from big companies as well as entrepreneurs, and … leverage access to all that deal flow by going out and actually raising capital from other sources, whether that be high net worth individuals or family offices or even institutions,” he said.

Indian mobile gaming platform Mobile Premier League raises $90 million

Mobile Premier League (MPL) has raised $90 million in a new financing round as the two-year-old Bangalore-based esports and mobile gaming platform grows its user base and looks to expand outside of India.

SIG, early-stage tech investor RTP Global, and MDI Ventures led MPL’s $90 million Series C financing round, with participation from existing investors Sequoia India, Go-Ventures, and Base Partners. The new investment brings MPL’s to-date raise to $130.5 million.

MPL operates a pure-play gaming platform that hosts a range of tournaments. The app, which has amassed over 60 million users and hosts about 70 games, also serves as a publishing platform for other gaming firms.

The Bangalore-based startup also offers fantasy sports, a segment that has taken off in many parts of India in recent years.

Because fantasy sports is only one part of the business, the coronavirus outbreak that has shut most real-world matches has not impeded the startup’s growth in recent months. The startup claimed it has grown four times since March this year and more than 2 billion cash transactions have been recorded on the app to date.

“Even in an environment as challenging as the current one, we are impressed with the success and accessibility of the platform concept – giving users a unique variety of experiences and social interaction. MPL’s track record speaks for itself, so we’re excited to support the team as they grow and expand,” said Galina Chifina, Managing Partner at RTP Global, in a statement.

But since an aspect of MPL is about fantasy sports, its app is not available on the Google Play Store. Google Play Store prohibits online casino, and other kinds of betting, a guideline Google reiterated last week as it pulled Indian financial services platform Paytm from the app store for eight hours. Sai Srinivas, co-founder and chief executive of Mobile Premier League, declined to comment on Google and Paytm’s episode. 

In an interview with TechCrunch, he said the startup plans to expand outside of India in the following months. He did not name the new markets, but suggested that India’s neighboring countries will likely be part of it. 

More to follow…

Demand Sage raises $3M to make sales and marketing data more accessible

Demand Sage, a new startup from the founders of recently-acquired mobile analytics company Localytics, announced this morning that it has raised $3 million in seed funding led by Eniac Ventures and Underscore VC.

When I spoke to CEO Raj Aggarwal, CTO Henry Cipolla and CPO Randy Dailey back in February, they outlined a vision to make it easier for marketers to get the data and insights they need, initially by automatically generating Google Sheets reports using data from HubSpot.

More recently, Demand Sage has been expanding into sales data.

“From our solid base with marketers we noticed sales leaders pulling us in to help them too,” Aggarwal told me via. “We’ve been able to give them visibility they didn’t have, in areas such as where deals are getting stuck and which activities actually drive revenue. It makes sense since there is a ton of overlap between the sales and marketing functions, especially in SMBs. ”

Aggarwal also said that Demand Sage has expanded its product lineup beyond pre-built report templates by introducing a no-code “Report Builder,” and by testing out an insights tools that could, for example, help salespeople determine which deals need their attention.

In a statement, Vinayak Ranade, CEO of Demand Sage customer Drafted, said, “With every sales and marketing tool I’ve used, eventually you give up and export data to a spreadsheet to dig into the numbers,” whereas with Demand Sage, it’s “like having a Google Sheets power-user that automatically makes the spreadsheets that you really want to see.”

As for how the business has fared during the pandemic, Aggarwal said, “Demand has really jumped. Companies need more cost-effective solutions and greater flexibility as business models shift.”

Indian fantasy sports app Dream11’s parent firm raises $225M at over $2.5B valuation

Dream Sports, the parent firm of fantasy sports app Dream11, has secured $225 million in a new financing round as the Mumbai-headquartered firm builds what it calls “end-to-end sports tech company” in the cricket-loving nation, which is also the world’s second largest internet market.

Tiger Global Management, TPG Tech Adjacencies (TTAD), ChrysCapital and Footpath Ventures financed $225 million in Dream Sports through primary and secondary investments, the 12-year-old Indian firm said.

The new round values Dream Sports at over $2.5 billion, two people familiar with the matter told TechCrunch.

Dream11 has cashed in on the popularity of cricket — a game that has attracted serious attention from several major firms including Disney and Facebook. Dream11 explores the fantasy part of it, allowing gamers to pick their choice of best players for an upcoming match. They can win cash prizes depending on how their selected team performs.

This year, Dream11 is also the title sponsor for the 2020 season of Indian Premier League cricket tournament, one of the most popular sporting events in the world. The startup won the rights, which was previously secured by smartphone vendor Vivo, by bidding $30 million for it. Vivo had to back out of the sponsorship amid geo-political tension between the two nuclear-armed nations.

The new season of IPL kickstarts later this week after months of delay due to the coronavirus outbreak.

“The sports sector has high growth potential in India. There is a significant opportunity to enhance the fan experience and we are excited to partner with Dream Sports to leverage technology in ways that will deepen the connection between Indian fans and the sports they love,” said Akshay Tanna, Managing Director at TPG, in a statement.

In recent years, Dream Sports has expanded into additional categories such as merchandize. Harsh Jain, chief executive and co-founder of Dream Sports, claimed in a statement today that the startup had amassed over 100 million users. (Dream11 app is not on the Google Play Store and the startup relies on people either using its mobile web or sideload its Android app on to their phones.)

“As a homegrown Indian company, we are proud to continue adding value to our 10 crore Indian sports fans, investors, employees and the overall sports ecosystem in India. In the last two years, we have grown beyond fantasy sports to sports content, merchandise, streaming, experiences, and there is much more to come. Our vision is to ‘Make Sports Better’ for India and Indian fans through sports technology and innovation,” he added.

Avendus Capital was the financial advisor to Dream Sports on the transaction.

More to follow…