VerSe Innovation, the parent of local news platform Dailyhunt and short video platform Josh, has acquired a majority stake in Valueleaf Group, a bootstrapped digital marketing solutions provider, for an undisclosed sum.
According to the company's projections, the acquisition is expected to significantly bolster VerSe Innovation’s revenue stream, with an anticipated addition of $100 million and a 10% EBITDA margin for the fiscal year 2025.
“By integrating Valueleaf’s data-driven insights with our ad tech platform, we anticipate a marked increase in advertising efficiency and effectiveness, driving higher-value partnerships. We are confident that this acquisition will solidify our trajectory of becoming India’s largest digital media tech conglomerate,” said Virendra Gupta and Umang Bedi, co-founders of VerSe Innovation.
Valueleaf Group, which was founded over 15 years ago and has been bootstrapped so far, finds its core capabilities in a full-funnel performance data management platform. VerSe claims that the platform reaches over 90% of Indian internet users and has extensive supply-side integrations across thousands of websites, apps and millions of smartphones.
“By integrating our innovative data-driven strategies & technologies with VerSe Innovation’s robust platforms, we are poised to elevate our impact and drive superior outcomes for brands,” said Satish Saraf and Srikanth Bureddy, co-founders of Valueleaf Group.
The acquisition is part of VerSe Innovation’s broader strategy to expand its digital media portfolio. The company, early this year, acquired Magzter, a digital magazine platform, to improve its content offerings with premium English language content.
VerSe Innovation is backed by marquee investment firms, including Canada Pension Plan Investment Board (CPPIB), Ontario Teachers' Pension Plan (OTPP), Qatar Investment Authority, and Peak XV Capital (Erstwhile Sequoia Capital India & Southeast Asia).
The company had last raised raised $805 million in its Series J funding round from CPPIB, Ontario Teachers' Pension Plan, Luxor Capital, Sumeru Ventures and existing investors Sofina Group, and Baillie Gifford, among others.
In the financial year through March 2023, VerSe recorded a 51% growth in revenue to Rs 1,457 crore from Rs 965 crore in FY22. Its net loss declined to Rs 1,910 crore in FY23 from Rs 2,563 crore the year before, as per VCCEdge, the data analysis platform of VCCircle.