Binny Bansal-Backed SaaS Startup VideoVerse Raises $46.8 Mn To Create Next-Generation Video Editing Products

SaaS startup VideoVerse, a video editing platform, has secured $46.8 Mn in Series B funding led by A91 Partners, Alpha Wave Global and Binny Bansal (Flipkart).

VideoVerse, formerly known as Toch.ai, will utilise the capital to strengthen its team, technology and expand its products & global footprints while creating a conglomerate of AI-based next-generation video editing products, its press statement said. 

Other investors, who participated in the funding round, include Stride Ventures, Innoven Capital, and Pacific Western Bank, among others. 

Founded in 2016 by Vinayak Shrivastav, Saket Dandotia, and Alok Patil, VideoVerse’s platform uses artificial intelligence to meta-tag images, video and text, and understand the context and key moments in videos.  

“We are thrilled to reveal our rebrand and a new round of funding in 2022. The new name reflects our leadership position as the go-to partner when enterprises and consumers think about video, which is critical as we join hands with A91 Partners and Alpha Wave Global. These funds will help us in our mission to innovate on behalf of consumer needs and industry demands,” said Vinayak Shrivastav, cofounder, VideoVerse.

In November 2021, the AI-driven video-processing startup launched an INR 100 Cr startup fund to invest in audio and video technology startups across the world. 

The startup raised $11.75 Mn in Series A funding in October 2021. Moneta Ventures, Baring Private Equity India, Binny Bansal, Ventureast, 9 Unicorns, Anthill Ventures, Cathexis Ventures, SOSV, Artesian and Innoven Capital participated in the round.

VideoVerse revenue has grown multifold after building a strong US tech and sales team as well as setting up a data science and machine learning team in Israel.

“Video creation and consumption will continue to see explosive growth, whether it is the latest binge-worthy web series, corporate branding video, sports content or short social video,” said  Gautam Mago, general partner at A91 Partners. 

However, as Mago said, despite this growth, video is still a complex technology that involves large files and a lot of computing. VideoVerse is revolutionising expensive and time-consuming legacy processes by driving video editing to the cloud age. It has a strong presence in Indian and global markets and is poised to become a significant market leader.

VideoVerse’s clients include enterprises across OTT players, broadcasters, sports clubs and leagues, marketing agencies, e-gaming platforms, schools, colleges, among others. 

VideoVerse has started operations in the US, Europe, Israel and is going to expand in Singapore and the Middle East by the end of this year.

Meanwhile, growing mobile, smartphone and internet penetration have supported video and streaming trends. The number of internet-connected smart televisions has increased in the past year and is expected to reach 40 Mn+ by 2025, according to a report by IBEF.

It is estimated that 30% of the content viewed on screens will be gaming, social media, short video and content produced exclusively for this format by media brands. 

According to an Inc42 report, short, regional and live content will lead the way for the industry. The current global ad spend on digital video advertising is around $92 Bn, with two-thirds of that amount going to mobile video ads.

According to statista, the video ad spend will reach an estimated $148 Bn in 2025 growing at a CAGR of 12.6%. By 2025 however, 79% of the digital video ad spend will go towards mobile ads. This will further propel growth for video streaming platforms.