Home-grown sports social platform to be listed on Aussie stock exchange

The listing of SportsHero, founded by Mr Bhatia, will raise $3.2 million for the firm.
The listing of SportsHero, founded by Mr Bhatia, will raise $3.2 million for the firm.PHOTO: SPORTSHERO

Home-grown company SportsHero, a social network for sports predictions, will be listed this month on the Australia Stock Exchange (ASX) via a reverse takeover of Australia-based mining company Nevada Iron.

The listing will raise A$3 million (S$3.2 million) for the company founded by Mr Dinesh Bhatia, who is also behind stock-market simulation app TradeHero.

The company will issue 60 million shares of common stock at A$0.05 per share.

SportsHero, a free mobile app, calls itself a "social competition platform". Each user starts with 100,000 points, and can then choose a sports event to make predictions on. The return they get is based on odds derived by SportsHero's proprietary algorithms.

In essence, the app allows users to monetise their sports prediction skills and become "Sports Heroes". Top-ranked users stand to win prizes.

For a fee, SportsHero also gives users access to validated prediction tips and revenue share with top-ranked users.

The platform's in-app virtual currency is exchangeable for merchandise, event tickets and other items on the app.

About 80,000 users have already registered, according to the company's prospectus. The app, which was launched in April this year, is available in 164 markets across six continents.

SportsHero's listing comes after European fintech firm Ayondo entered into a licensing deal with TradeHero last month.

TradeHero, which Mr Bhatia created with a co-founder in 2012, allows users to trade virtual money based on real-world stock market data. The app now has eight million users in total, the majority in China.

TradeHero's success proved the business model works and was the impetus for setting up SportsHero, Mr Bhatia told The Straits Times.

But "there's a much bigger percentage of people interested in sports, for emotional and social reasons, compared with trading", which means SportsHero could have bigger growth potential.

Mr Bhatia said the company decided to list on the ASX because regulators and investors there are open to giving small companies a chance.

"We see the ASX as the Nasdaq of Asia. A lot of tech companies in the region are listing there," he said. "The regulators at ASX are very encouraging and, more importantly, retail investors are open to investing in early-stage, small-cap companies due to their experience with mining companies, which are relatively high-risk, high-reward ventures."

The company intends to use the listing proceeds to introduce new sports on the SportsHero app, acquire more customers and enhance the user experience.

The app now supports football and is planning to roll out cricket, basketball and baseball next year.

A version of this article appeared in the print edition of The Straits Times on December 09, 2016, with the headline 'Home-grown sports social platform to be listed on Aussie stock exchange'. Print Edition | Subscribe