VerSe Innovation, the parent firm of news aggregator Dailyhunt and short video platform Josh, significantly cut losses in the financial year 2023-24, helped by improved operational efficiency, platform consolidation and monetisation.
Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) losses fell by 51 percent to Rs 710 crore from Rs 1,448 crore in the previous year, excluding non-cash expenses, the company said on March 26.
A 17 percent reduction in cost of services to Rs 1,155 crore from Rs 1,389 crore in FY23 and a 65 percent decrease in business promotion expenses to Rs 339 crore in FY24 helped cut losses.
However, operating revenue declined by 13.5 percent to Rs 1,261 crore in FY24, from Rs 1,457 crore in FY23. The total revenue dropped by 17.5 percent to Rs 1,493 crore in FY24, from Rs 1,809 crore in the previous year.
That said, VerSe Innovation, which counts Google, Microsoft, and Canada Pension Plan Investment Board (CPP Investments) among its investors, said it aims to achieve over 75 percent revenue growth in FY25 and break even in the second half of the calendar year 2025.
Its portfolio of artificial intelligence (AI)-first products and platforms will power growth, the company said.
These include the programmatic adtech engine NexVerse.ai, subscription content business Dailyhunt Premium, influencer marketplace VerSe Collab, and Josh’s Audio Calling and Audio Stories features that allows users to connect with creators as well as experience immersive narrative short fictional shows across genres like drama, romance, and thrillers in multiple languages.
Over the past year, VerSe Innovation has sought to expand its revenue stream beyond a purely advertising-driven model through a series of acquisitions.
In April 2024, it acquired global digital newsstand Magzter to foray into digital subscriptions. In August, it bought a majority stake in Valueleaf Group, a data-driven digital marketing solutions provider to strengthen its efforts in building an ad exchange platform for advertisers targeting consumers in India.
The Bengaluru-based firm is also doubling down on commerce-oriented revenue streams such as VerSe Collab where it connects influencers to brands for a commission, and live streaming where users gift and tip creators.
VerSe Innovation 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.
Social media unicorn ShareChat, which operates an eponymous homegrown social media platform and the short video app Moj, also reduced its losses in FY24. The startup's adjusted EBITDA losses dropped 67 percent to Rs 793 crore in FY24 the previous year. Revenue grew 33 percent to Rs 718 crore.
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