VerSe Innovation, Parent of Dailyhunt, Sees 17.5% Revenue Drop in FY24, Reduces EBITDA Loss
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Synopsis
VerSe Innovation, the parent of Dailyhunt, reported a 17.5% revenue decline in FY24, dropping to Rs 1,493 crore from Rs 1,809 crore. Despite this, the company is optimistic about FY25 growth and reducing costs.
Key Takeaways
- 17.5 percent decline in total revenue for FY24.
- Operating revenue decreased by 13.5 percent.
- EBITDA shrank by 51 percent.
- Cost of services cut by 17 percent.
- Expecting a 75 percent revenue increase in FY25.
Bengaluru, March 26 (NationPress) VerSe Innovation, the parent organization of Dailyhunt, has disclosed a marked decrease in revenue for the financial year 2024 (FY24), with the company’s total revenue declining by 17.5 percent to Rs 1,493 crore in FY24, down from Rs 1,809 crore in the preceding fiscal year.
However, the operating revenue saw a 13.5 percent drop, settling at Rs 1,261 crore in FY24, compared to Rs 1,457 crore in FY23.
According to the financial documents, the company experienced a 51 percent reduction in EBITDA during the same timeframe, which fell from Rs 1,448 crore to Rs 710 crore.
In spite of the revenue downturn, VerSe Innovation pointed out cost savings in crucial areas.
The company’s cost of services dropped by 17 percent to Rs 1,155 crore, while promotional expenses for the business saw a significant 65 percent decrease, from Rs 969 crore to Rs 339 crore in the last fiscal year.
VerSe Innovation remains hopeful about its growth outlook. The company anticipates a revenue rise exceeding 75 percent in FY25, outpacing the expected 10-15 percent growth in India’s digital advertising market.
The organization has also broadened its revenue channels beyond advertising through acquisitions.
In April 2024, it secured the global digital newsstand Magzter, which boasts a collection of over 8,500 premium magazines and newspapers, for an undisclosed amount.
In August, it acquired a majority interest in Valueleaf Group, a data-centric digital marketing firm, to bolster its ad exchange platform for Indian marketers.
Moreover, VerSe is concentrating on commerce-driven strategies, including linking influencers with brands through VerSe Collab and monetizing live streaming via virtual gifts and tips for creators.
According to reports, the company has raised over $2 billion in funding to date.
In April 2022, it achieved $805 million in a funding round led by the Canada Pension Plan Investment Board and the Ontario Teachers' Pension Plan Board, valuing the company at around $5 billion.
