Bengaluru-based VerSe Innovation, the company behind news aggregator app Dailyhunt short-video app Josh, reported a sharp drop in topline for the year through March 2024 and said it has changed its methodology to calculate revenue.
The company said total revenue was Rs 1,261 crore in FY24, down from the revised Rs 1,356 crore in FY23. It had earlier reported total revenue of Rs 1,808.5 crore for FY23.
“We have adjusted the revenue on account of a more conservative revenue recognition approach as we get to break even and prepare for an IPO,” said Umang Bedi, co-founder of VerSe.
The local-language tech company is now aiming for over 75% revenue growth in FY25, with a goal of achieving breakeven in the second half of calendar year 2025.
The company said it is placing its bets on AI-driven innovation for scalable monetization across advertising, subscriptions, and influencer commerce. It believes that its key growth drivers include its AI-powered AdTech engine NexVerse.ai, premium content subscription service Dailyhunt Premium, and creator-focused marketplace VerSe Collab.
VerSe also said it reduced its EBITDA burn by 51% through tighter operational discipline and platform consolidation. Its EBITDA burn dropped to Rs 710 crore in FY24 from Rs 1,448 crore in FY23 (excluding non-cash expenses).
The company achieved a 17% reduction in its cost of services to Rs 1,155 crore in FY24. Additionally, business promotion expenses were cut by 65% to Rs 339 crore in FY24, against Rs 969 crore in FY23, the company said in a release.
VerSe Innovation is backed by prominent investment firms, including the Canada Pension Plan Investment Board (CPPIB), Ontario Teachers' Pension Plan (OTPP), Qatar Investment Authority, Carlyle, Goldman Sachs, and Peak XV Capital. In its most recent funding round, in 2022, the company raised $805 million in Series J funding from CPPIB, Ontario Teachers', Luxor Capital, Sumeru Ventures and existing investors such as Sofina Group and Baillie Gifford.
