DailyHunt Parent VerSe Innovation Snaps Up Magzter To Expand Digital Content Portfolio

VerSe Innovation, which owns news aggregator DailyHunt and short video platform Josh, has bought New York-based digital newsstand platform Magzter.

However, the company did not disclose the financial terms of the deal.

Established in 2011, Magzter is a cross-platform, self service, global digital newsstand with a library of more than 8,500 premium magazines and newspapers.

The acquisition marks a step for VerSe Innovation’s ambition to become a major digital media tech conglomerate.

Launched as DailyHunt Premium, this subscription-based service will grant users access to premium content from international publishers in over 60 languages, encompassing English, French, Italian, Japanese, Russian, Spanish and more. 

This collection features globally renowned publications like Time, Newsweek, Fortune, The Economist, Forbes, Reader’s Digest, Cosmopolitan, Vogue, Maxim, Elle, Vanity Fair, New Yorker and Bazaar, among others, across respective India and international editions. 

This expansion addresses the demand for high-quality premium content, particularly catering to the discerning tastes of India’s elite and aspirational upper-middle-class demographic.

The acquisition further strengthens DailyHunt’s position as the leading platform for news and infotainment in India, offering content in various international and regional languages, said a statement. 

This acquisition also marks the evolution of the DailyHunt’s revenue model, expanding from pure advertising to include a blend of subscription-based revenue streams.

Virendra Gupta and Umang Bedi, cofounders, VerSe Innovation, said, “The acquisition aligns seamlessly with our growth trajectory and enhances our ability to deliver premium content experiences to our ever-expanding user base. We will keep strengthening our capabilities and spreading our wings, leading the way in India’s digital content space.”

“This partnership opens up new avenues for delivering high-quality content experiences to users across India, further strengthening our goal of providing unparalleled digital reading experiences to our readers,” Girish Ramdas and Vijayakumar Radhakrishnan, cofounders, Magzter. 

Avendus was the exclusive financial advisor in this transaction.

VerSe continues to build strategically with the launch of several new initiatives including VerSe Collab – a tech-driven influencer marketplace and the upcoming introduction of the VerSe NeXTChange, a Bharat-focused programmatic audience network and WISE – VerSe’s Generative AI platform for content generation. 

In February, VerSe Innovation raised debt capital of INR 50 Cr ($6.25 Mn) from Alteria Capital.

VerSe Innovation secured $805 Mn in its last funding round, led by existing investor Canada Pension Plan Investment Board (CPPIB) in 2022.

Right after the $805 Mn fundraise, the company had even fired around 150 employees, or almost 5% of its total workforce, back in 2022. 

Besides, DailyHunt has sustained positive EBITDA for over two years, demonstrating consistent year-over-year growth.

On the other hand, Indian short video platforms have not had as much success as they anticipated in the aftermath of the TikTok ban. Inc42’s deep dive into the ecosystem last year revealed that Indian startups were far from minting profits and even struggled on operational vanity metrics such as GMV, subscriber base, and engagement.

Amid the downturn, multiple cofounders at many of these short-video platforms have quit including Chingari’s Aditya Kothari and ShareChat’s Farid Ahsan and Bhanu Pratap Singh.