VerSe Innovation, the parent company of content aggregator Dailyhunt and short-video platform Josh, is laying off about 350 employees this month as part of a broader restructuring aimed at boosting profitability and accelerating its push into artificial intelligence (AI).
The move comes amid a continued effort to streamline operations, cross-leverage talent across business units, and focus resources on growth segments, the company said in a statement on May 10.
“VerSe Innovation has been undergoing a strategic transformation to build a more agile, focused, and future-ready organisation,” a company spokesperson said.
“This strategic transformation is geared at accelerating investments in AI, streamlining operations, and aligning the company’s strategy and structure to its long-term priorities and growth,” the statement added.
The layoffs are part of VerSe’s efforts to automate manual processes, reduce operational costs, and improve structural efficiency as it targets profitability by the end of FY25.
According to the company’s updated financial report, its revenue from operations for FY24 stood at Rs 1,029 crore compared to Rs 1,104 crore in the previous financial year. Meanwhile, its net loss stood at Rs 889 crore in FY24 versus Rs 1,909.7 crore the year prior.
To be sure, VerSe has previously reported its FY24 operating revenue at Rs 1,261 crore, and an earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of Rs 710 crore.
VerSe has also projected over 75 percent revenue growth in FY25, significantly outpacing the 10–15 percent expected growth in India’s digital advertising sector. Key initiatives include AI-led platforms such as NexVerse.ai, a subscription service in partnership with Magzter called Dailyhunt Premium, and VerSe Collab, a platform for managing influencer campaigns, the company said.
The restructuring comes weeks after VerSe’s auditor Deloitte flagged multiple critical lapses in the company’s internal financial controls, Moneycontrol reported earlier.
However, Deloitte clarified that the issues did not affect its overall opinion on VerSe’s standalone financial statements, which it said presented a “true and fair” view.
VerSe Innovation previously raised $805 million in a funding round led by the Canada Pension Plan and Investment Board and the Ontario Teachers' Pension Plan Board at a valuation of around $5 billion in April 2022. The company has, so far, raised over $2 billion across multiple rounds, and was eyeing an initial public offering this year.
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