Highlights
- Triggered by new regulations, Dream11 sports splits into eight independent, Alphabet-style verticals.
- The group diversifies into fintech and AI while retaining its workforce without layoffs.
- Dream11 transitions from cash contests to a social "second-screen" engagement platform
In a massive strategic pivot aimed at survival and diversification, Dream Sports, the parent company of India’s fantasy gaming giant Dream11, has executed a plan where Dream11 Sports splits its operations into eight independent business units. This restructuring comes as a direct response to the stringent Promotion and Regulation of Online Gaming Act (PROGA) 2025 and the imposition of a 28% GST, which effectively dismantled the company's core real-money gaming model.
Dream Sports CEO and co-founder Harsh Jain announced the overhaul on Friday, confirming that the legislative changes passed in August had wiped out nearly 95% of the company’s revenue and erased its entire profit margin. To navigate this crisis, the company is adopting a structure similar to Alphabet, Google’s parent company, transforming into a diversified sports technology group where each vertical operates as a semi-autonomous ‘startup’ with its own leadership and potential for external funding.
Dream11 Sports Splits: The 8 New Business Units
The eight new verticals cover a wide spectrum of sports, technology, and finance. The portfolio is headlined by a reconstituted Dream11, which has pivoted away from cash-based contests to become a "second-screen" engagement platform. The other units include the sports content platform FanCode, the experiential travel arm DreamSetGo, and the mobile game studio Dream Cricket (formerly Dream Game Studios).
Expanding beyond pure sports, the group has launched Dream Money, a fintech app focused on deposits and gold investments, and Dream Sports AI, an artificial intelligence unit featuring apps like Dream Play for analytics and RushLine for cricket predictions. The lineup is completed by Dream Horizon, an open-source technology division, and the Dream Sports Foundation, the group's philanthropic arm. Jain emphasized that while Dream Sports will retain majority ownership, each CEO is empowered to drive their unit’s growth independently, shifting the focus from immediate ROI to increasing overall group operating revenue.
The restructuring has triggered significant leadership movements from within the existing ranks. Dream Sports CTO Amit Sharma has taken charge as the founder and CEO of Dream Sports AI, while Amit Garde, formerly the Senior VP of Engineering at Dream11, now leads Dream Horizon. On the fintech side, Chief Product Officer Rahul Mirchandani has moved to lead the Dream Money initiative, overseen by co-founder Bhavit Sheth.
Changes also extend to the gaming division, where Chief Business Officer Nilay Arora has stepped in as interim CEO of Dream Game Studios following the departure of Rohit Gupta. Jain clarified that the central Dream Sports team will now function efficiently with a focus on legal, HR, finance, and public relations, allowing the individual units to "run their own ships".
No Layoffs Policy and Workforce
Despite the severity of the financial hit, Dream Sports has committed to a "no-layoffs" policy. The original workforce of approximately 1000 employees has been redistributed across the eight new verticals. The core Dream11 platform, which previously demanded a massive headcount, will now run with a leaner team of fewer than 200 people. The remaining employees have been absorbed by the growing newer units.
Describing the workforce as a "winning team", Jain drew a sports analogy, stating that losing one match doesn't mean you change the team; rather, you prepare for the next World Cup. To support staff during this transition, the company removed bonus lock-ins, allowing employees to exit with pro-rata pay if they wished, though reports suggest most have chosen to stay.
The company asserts it has a financial runway of three to four years without needing fresh external capital, having reported a net profit of Rs 188 crore on revenues of Rs 6,384 crore in FY23 before the regulations took hold.
The flagship Dream11 platform has undergone a complete transformation. With cash contests outlawed by PROGA 2025, the app is now a social hub for sports fans, featuring "watch-alongs" hosted by creators, live chat interactions, and free-to-play fantasy sports supported by advertising. The platform aims to monetize its 250 million registered users, of whom 20 to 30 million remain monthly active users, through in-app currency called 'DreamBucks' and digital goods.
Looking ahead, Dream Sports is preparing to consolidate its culture by moving its headquarters from Bandra Kurla Complex (BKC), Mumbai, to a new "Dream Sports Stadium" in Worli, Mumbai, by January 2026. Having reverse-flipped its domicile to India earlier in March, the company views this restructuring as a long-term play to rebuild value and prepare for future opportunities, potentially including an IPO.
