VerSe Innovation, Owner of Dailyhunt, Sees 7% Revenue Drop in FY24, Reduces EBITDA Loss
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Synopsis
VerSe Innovation, the parent company of Dailyhunt, reported a 7% decline in FY24 revenue, totaling Rs 1,261 crore. Despite this drop, the company achieved significant cost reductions, leading to halved EBITDA losses and optimistic growth projections for FY25, as well as strategic acquisitions to diversify its revenue streams.
Key Takeaways
- 7% revenue decline to Rs 1,261 crore in FY24.
- 51% shrink in EBITDA from Rs 1,448 crore to Rs 710 crore.
- Cost of services reduced by 17%.
- Promotional expense cut by 65%.
- Projected revenue growth of over 75% in FY25.
Bengaluru, March 26 (NationPress) VerSe Innovation, the parent entity of Dailyhunt, has disclosed a revenue decrease for the financial year 2024 (FY24), with total revenue declining by 7 percent to Rs 1,261 crore, compared to Rs 1,356 crore in the previous fiscal year (FY23).
The financial report shows that the company’s EBITDA contracted by 51 percent, falling from Rs 1,448 crore to Rs 710 crore.
In spite of the revenue downturn, VerSe Innovation emphasized its cost management strategies in crucial areas.
The cost of services reduced by 17 percent to Rs 1,155 crore, and promotional expenses saw a significant decrease of 65 percent, dropping from Rs 969 crore to Rs 339 crore during the last fiscal year.
VerSe Innovation is optimistic regarding its future growth, forecasting a revenue increase exceeding 75 percent in FY25, which significantly outstrips the expected 10-15 percent growth in India’s digital advertising sector.
Building on the operational discipline and platform strength achieved in FY24, VerSe is entering FY25 with projections of revenue growth that will exceed 75 percent, greatly surpassing the anticipated growth of India’s digital advertising industry.
The company has broadened its revenue avenues beyond advertising through strategic acquisitions.
In April 2024, it acquired Magzter, a global digital newsstand boasting a library of over 8,500 premium magazines and newspapers, for an undisclosed sum.
In August, it secured a majority stake in Valueleaf Group, a data-centric digital marketing firm, aimed at enhancing its ad exchange platform for Indian advertisers.
Moreover, VerSe is emphasizing commerce-driven initiatives, such as linking influencers with brands via VerSe Collab and monetizing live-streaming through virtual gifts and tips for creators.
According to reports, the company has raised over $2 billion in funding to date.
In April 2022, it garnered $805 million in a funding round led by the Canada Pension Plan Investment Board and the Ontario Teachers' Pension Plan Board, resulting in a company valuation of around $5 billion.
