SportsHero – A New Fantasy Sports App Plans for Australia IPO

In a world, where sports betting has become both immensely popular and convenient, with online betting and handy mobile wagering apps, there is a rise in demand for practical knowledge for placing these bets. SportsHero, the new fantasy sports app that allows users to interact with other sports fans, show off the depth and breadth of their sports knowledge and predict the outcome of sports contests could be the answer to the matter. The team responsible for developing this sports app is the same Singapore based app developer, MyHero that is responsible for creating the financial app TradeHero, a virtual trading app, which had its official launch earlier last week

SportsHero

The Fantasy Sports app, while promising to enrich the knowledgebase of the users, does not actually allow any real money bets. SportsHero is available on both the iOS and Android smartphone platforms. The app allows sports fans to predict sports matches around the world; each new user receives 100,000 points to start with. These points, which act as virtual currency in the app’s wagering system can be accumulates or diminished depending on the accuracy of predictions made by players; prediction returns are calculated based on real-world data. The social gaming app allows players to communicate with other users to gather as much information as they wish to before placing their bets; this can be done by following other users on the app. The ultimate goal of the app is to make educated predictions on the outcome of various sports matches. While the wagers placed will only deal in virtual currency, users can look forward to getting an income from the app by acquiring followers for a monthly subscription fee of $2.00 per month, which will be divided equally between the app and the users themselves. SportsHero also features advertisements from gambling providers that do offer real money wagering on the same sports matches they are dealing with.

SportsHero was originally named FootballHero and only dealt with competition in football matches, however, with the change in name, the app has decided to expande their reach into dealing with wagers in other sports such as basketball, tennis, hockey, cricket and more; sports that are popular in the Asia Pacific region. FootballHero already had 250,000 users that have automatically been transferred over to the new app.

SportsHero, that also allows friends to interact over different sports from all corners of the globe, have announced that they are introducing tangible prizes for winners in the near future like a Trip to watch the EURO 2016 finals in France, signed Ronaldo and Messi Jerseys, Amazon gift vouchers and much more.

Influence from TradeHero

The makers of SportsHero have seen much success with their financial app TradeHero. The a mobile stock market simulation app that aims to educate the general population with trading knowledge, allows users to trade in virtual stocks, compete with friends, learn expert stock tips and tricks and finally, gain the opportunity to earn some extra cash. The no risk platform allows users to learn about real time trade in 29 stock exchanges, using a virtual $100k that is given to each user when they download the app.

SportsHero uses much of the same mechanics of TradeHero; while TradeHero allows stock market enthusiasts follow the stock markets and exchanges expert tips with each other on financial trade, SportsHero lets fans make predictions on upcoming games and allow the same sharing of expert information on sports betting.

The app, which was launched seven months ago, has since then built up a registered user base of around seven million individuals; 75 percent of them are active on a bi-monthly basis.

Dinesh Bhatia, founder and CEO of MyHero Ltd, the holding company for the TradeHero iOS app, describes it a “financial literacy tool” that uses gamification to engage users to help them learn about improving their trading skills. He also emphasised that the growth the app has seen so far has been achieved, working only with limited resources. The startup has recently secured a $10 million funding, which is one of the largest Series A rounds for a consumer startup in the region; the developers plan on using some of this money to extensively promote the app over the next 18 to 24 months and expect to see between two and four million users by the end of the promotional efforts.

Bhatia, also said in an interview with TechCrunch that the top users at TradeHero have a significant following, which ranges in the hundreds of thousands; this can produce a large source of income each of these members. He believes that the same is possible for SportsHero and the future will see prospects grow in the same magnitude.

Despite the links between the two apps, Bhatia reiterated that SportsHero is its own entity and has its own dedicated team of staff. Bhatia himself plans on devoting 90 percent of his time to the new service; with the rest being invested is overseeing the TradeHero app.

Raising Money

TradeHero has raised the $10 million funding mainly from private investors and venture capitals, including Kleiner Perkins Caufield Byers’ China fund; SportsHero on the other hand has used a different method to secure the required funding – the company, which announced its own fundraise from day one, acquired a $2.4 million investment from the Australia-based Nevada Iron. Nevada Iron has also agreed to acquire the company in full, through a reverse listing, a process where a private company purchases a publicly traded company and shifts its management into the latter, on the Australia stock exchange (ASX), which is scheduled for August 2016.

Australia Stock Exchange

The ASX listings are fast becoming a popular platform for tech startups in Southeast Asia. Malaysian investment firm, Catcha Group, has successfully floated three of their companies on the ASX. Mobile social network, MigMe, is also present on the exchange along with Singapore based data archiving service, Dropsuite, which is among one of those that are waiting to become listed this year.

Bhatia commented on this by saying, “The ASX right now is very technology focused; a lot of investors putting money into the ASX are very keen on tech companies.”

The market that reaches more than 20 million people in Australia and is believed to be a lucrative platform for online services such as SportsHero. Bhatia also added that the listing on the ASX could help the company grow its presence in Australia.

However, the ASX has been accused of enabling unprofitable and unproven tech companies to go public, which in turn devalues the exchange and its companies. Therefore, in response to that, a new set of rules have been proposed for the exchange. Currently, any company that has a market value of $10 million and tangible assets worth $3 million are eligible to IPO on the ASX; however, it has been proposed that the ASX be limited to companies with a market value of $20 million, with tangible assets worth $5 million. Given that SportsHero is expect to go public in the summer of this year, this ruling is unlikely to affect their listing.

 

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