Mondogoal acquisition aborted at eleventh hour

Mondogoal acquisition aborted at eleventh hour

Monday, November 14, 2016 Posted by Andy McCarron
CEO Shergul Arshad frustrated at late collapse of deal

It has been revealed that daily fantasy sports platform Mondogoal was in the final stages of an investment with a path towards acquisition before the major B2B software development company pulled out without explanation.

Mondogoal CEO and Founder Shergul Arshad told TotallyGaming.com: “We’d looked each other in the eye and the terms had been agreed upon. It was a detailed three month process in which we were in regular contact and under a fairly binding term sheet, had numerous, extensive discussions. All that was required were basically the signatures from their end, and it was at that point that they told us it wasn’t happening."

He continued: “As a start up in the space, funding is of course a pressing issue and as we were expecting this to go through, using personal funds to extend towards the deal after being promised those would be repaid. Stunning that someone would say that to another man, and act in such a weak manner. But as soon as it happened, I spoke to three other DFS sites and it was revealed that this was typical for this large group. It's not only unprofessional, it will remove innovation from the industry if startups are bled to death. Good luck finding innovation if you go kill off entrepreneurs."

Mondogoal has shown notable growth in the past year. It is leading the way in terms of live B2B daily fantasy partnerships, having started out by signing deals with SISAL and Lottomatica in Italy. Both parties have been very happy with the product, and have seen great growth month on month since testing it out during the European Championships.

More recently a deal was also agreed with Microgame to add 50 more sites into the largest DFS network in Europe. Mondogoal has also been hot on establishing club partnerships, and at one time counted Real Madrid, Barcelona, Spurs, Chelsea, AS Roma and more amongst its footballing partners.

Such activity was one factor in the operator being shortlisted in the fantasy category at this year’s SBC Awards which are taking place on December 7th in London.

The company also launched an app in June 2016, added tournaments for leagues such as the Chinese Super League and, via its partnership with Sports Interactive, offered players a golden opportunity to feature in the new Football Manager 2017.

It is now no secret that the company is available for acquisition. “And whatever strategic player is smart enough to see what we have built and have going on, could own the winner in all of European Daily Fantasy Sports," Arshad commented.

Totally Gaming says: With a mooted merger between DraftKings and FanDuel apparently imminent, the rest of the DFS industry is jockeying for position as boardrooms try and second guess where the market is heading, Expect there to be consolidation among providers as market normalises, although as Mondogoal has discovered it is a buyers market at the moment.

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