There’s no shortage of rags-to-richest startup stories in India — comapnies that were started off with a couple of dreamy-eyed entrepreneurs are now worth billions of dollars, and have turned their founders fabulously wealthy. But around the same time that the startup wave was taking off, there’s another set of comapnies that have managed to skyrocket their valuations — and they have nothing to do with technology.
Indian Premier League teams have seen their valuations grow manifold since the league was founded in 2008. IPL teams were sold off in an auction when for a few hundred crores — Rajasthan Royals was sold for a mere Rs. 273 crore in 2008 — but as many as 6 IPL teams are now unicorns, with valuations more than Rs. 8,200 crore. This is the increase in valuation of IPL teams since 2008.
1.Mumbai Indians
2008 valuation: Rs. 456 crore
2022 valuation: Rs. 10,673 crore
Increase in valuation: 23x
Mumbai Indians was the most expensive IPL team when it was sold in 2008, having been sold for a $111.9 million. And 15 years of the IPL later, Mumbai Indians is still the most valuable IPL team, and is worth Rs. 10,673 crore. This is a 23x increase in the team’s valuation, which would be the envy of many startups. And unlike most startups, Mumbai Indians makes money — had a revenue of Rs. 264 crore in 2022, and an operating income of Rs. 44 crore.
2. Chennai Super Kings
2008 valuation: Rs. 371 crore
2022 valuation: Rs. 9,442 crore
Increase in valuation: 25x
Chennai Super Kings has been one of the most consistent teams in the league — it’s now reached the finals an astounding 10 times in 15 years. CSK has seen its value jump 25x since 2008 — the team had been bought for Rs. 371 crore, but is now worth Rs. 9,442 crore. Chennai Super Kings had a revenue of Rs. 330 crore in 2022, and an operating income of Rs. 118 crore.
3. Kolkata Knight Riders
2008 valuation: Rs. 306 crore
2022 valuation: Rs. 9,031 crore
Increase in valuation: 29x
Kolkata Knight Riders had been one of the cheaper teams in 2008, having been snapped up for Rs. 306 crore by a consortium led by Bollywood star Shah Rukh Khan. It’s now worth a smart Rs. 9,031 crore, which is a 30x increase in its valuation. In 2022, it had a revenue of Rs. 330 crore, and an operating income of Rs. 113 crore.
4. Royal Challengers Bangalore
2008 valuation: Rs. 455 crore
2022 valuation: Rs. 8,415 crore
Increase in valuation: 18x
RCB might have not won a single IPL title in 15 years, but it’s still a unicorn. It was sold for the second highest amount in 2008 — Rs. 455 crore — but is now worth Rs. 8,415 crore. Vijay Mallya hadn’t made the best business moves in other fields, but his IPL investment has netted him an impressive 18x return. RCB had a revenue of Rs. 291 crore in 2022, and an operating income of Rs. 77 crore.
5. Delhi Capitals
2008 valuation: Rs. 342 crore
2022 valuation: Rs. 8,497 crore
Increase in valuation: 25x
Like RCB, Delhi Capitals hasn’t won a single IPL trophy, but the owners have seen their investment go up a smart 25x. The Delhi team had been sold for Rs. 342 crore in 2008, but is now worth Rs. 8,497 crore. Delhi Capitals had a revenue of Rs. 285 crore in 2022, and an operating income of Rs. 66 crore.
6. Rajasthan Royals
2008 valuation: Rs. 273 crore
2022 valuation: Rs. 8,210 crore
Increase in valuation: 30x
Rajasthan Royals had been the cheapest team sold in 2008 for a mere Rs. 273 crore, but it’s yielded its owners the best returns in the IPL. Rajasthan Royals is now worth Rs. 8,210 crore, which is a 30x return on the original investment. It’s perhaps returns like these which have prompted a global tech VC like Tiger Global to explore an investment with the IPL team.
7. Sunrisers Hyderabad
2008 valuation: Rs. 436 crore
2022 valuation: Rs. 7,964 crore
Increase in valuation: 18x
Sunrises Hyderabad was sold as Deccan Chargers for Rs. 436 crore all the way back in 2008. After changing hands through different owners, in its Sunrisers Hyderabad avatar, it’s now worth Rs. 7,964 crore. This is an 18x return on the original investment. Sunrisers Hyderabad had a revenue of Rs. 254 crore and an operating income of Rs. 25 crore in 2022.
8. Punjab Kings
2008 valuation: Rs. 310 crore
2022 valuation: Rs. 7,594 crore
Increase in valuation: 24x
Punjab Kings has also failed to win a single trophy over 15 years, but has still proven to be a good investment for its owners. The team had been purchased for Rs. 310 crore in 2008, and is now worth Rs. 7,594 crore, which is a 24x increase in its valuation. Punjab Kings had revenue of Rs. 250 crore and an operating income of Rs. 78 crore in 2022.
Sources:
2008 valuations
Current valuations, revenue and operating income
Currency conversion and current valuations