Fantasy sports start-up seeks fresh funds; big-name investors saddle up
A fantasy sports developer and gambling newcomer with a register of high-profile backers has kicked off a search for fresh funding, calling in advisers from Henslow.
Street Talk understands Group1 Sports, founded by former Amcor ANZ general manager Simon Roy last year, is seeking to raise $3 million at a $7.5 million pre-money valuation. The company develops fantasy social games based on live sports events and employs a lotto-style prize pool, taking a clip of bets.
Group1 Sports is kicking off a capital raising to get its product ready for the spring racing carnival. Getty
Funds will be used to hard-launch its horse racing game in time for the spring racing carnival and for further development of a new V8 Supercar game, expected to launch in October.
Its backers, who tipped $2 million in at the seed stage in 2021-22, include Webjet boss John Guscic, Ausbil co-head of equities John Grace and Seek chairman Graham Goldsmith.
Group1 Sports is aiming to deliver $34 million in sales by financial year 2025 and $5 million in EBITDA by financial year 2026, according to a presentation seen by Street Talk, pitching its low fixed costs and capacity to expand into new markets and sports competitions like AFL and NBA.
The company hopes to grow its customer base to more than 42,900 by FY24 from 1600 today and its number of active monthly customers to more than 23,700 from 224. The majority of its clients – about 70 per cent – are under the age of 40.
Group1 Sports is registered in Darwin, where most major online bookies have set up shop, and since February, has been licensed by the Northern Territory Racing Commission.
Horse racing is the dominant betting market in Australia. Group1 Sports
Roy runs the shop with former Zodiac ANZ
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