Tencent is selling its stake in Sporta Technologies Ltd, the parent company of the Indian fantasy sports platform Dream11, to comply with India’s investment regulations.

Tencent has been an investor in Dream11 since 2018 when it acquired a stake in the company worth about US$750 million.

Tiga Investment Pte Ltd, based in Singapore, will acquire Tencent’s shares for at least US$150 million, although the exact percentage of the stake sold and the total holdings were not disclosed.

The Competition Commission of India has approved Tiga’s investment, confirming that the transaction will not harm competition within the country.

This divestment reflects the Indian government’s guidelines, which restrict investments from neighboring countries, particularly China.

Since the border tensions in Ladakh in 2020, there has been increased scrutiny of such investments, resulting in stricter approval processes for foreign investments from China.

After reevaluating the investment landscape post-2020, Tencent shifted its focus in India toward debt investments over equity stakes.