VerSe Innovation’s net loss declined over 25% YoY to INR 1,909.7 Cr in FY23
The parent of DailyHunt and Josh saw its operating revenue zoom 51% YoY to INR 1,456.5 Cr in FY23
Total expenditure rose marginally to INR 3,716 Cr in FY23 from INR 3,714 Cr in the previous fiscal year
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VerSe Innovation, the parent of DailyHunt and Josh, managed to narrow its net loss by over 25% in the financial year ended March 31, 2023. The Bengaluru-based unicorn reported a net loss of INR 1,909.7 Cr in the financial year 2022-23 (FY23) against a net loss of INR 2,563.3 Cr in the previous fiscal year.
Founded in 2007 by Virendra Gupta, VerSe Innovation runs new aggregator platform DailyHunt and short video platform Josh. Later, Umang Bedi joined the startup as its cofounder. VerSe Innovation primarily earns revenue through advertising on its platforms. Besides, it also generates revenue from subscriptions for services rendered.
The startup’s operating revenue zoomed 51% to INR 1,456.5 Cr in FY23 from INR 964.7 Cr in the previous fiscal year.
Including other income, total revenue rose 57% to INR 1,808.5 Cr during the year under review from INR 1,150.9 Cr in FY22.
Where Did VerSe Innovation Spend?
The startup’s total expenditure rose marginally to INR 3,716 Cr in FY23 from INR 3,714 in the previous fiscal year.
Cost of Services: It accounted for 71% of the startup’s total expenditure. The startup spent INR 2,699 Cr under the head in FY23 against INR 2,693.4 Cr in the previous year. Cost of services included expenditure on production, transportation and other expenditure pertaining to exploration and production activities as well as advertising.
Employee Benefit Expenses: VerSe Innovation spent INR 811.4 Cr on employee salaries and other benefits in FY23, an increase of 11% from INR 731 Cr in the previous year. It must be highlighted that the startup laid off around 150 employees during the year under review.
On a unit economics level, VerSe Innovation spent INR 2.55 to earn every rupee from operations in FY23.
The startup began operations as a B2B company catering to telcos by providing SMS alerts about jobs, property, matrimony, news, and education across India, Bangladesh, and Africa. Later, it pivoted to the B2C model and acquired Eterno Infotech, which launched Newshunt in 2009.
VerSe Innovation rebranded Newshunt as Dailyhunt in 2015, which has since amassed 350+ Mn users. Until 2022, about 98% of the startup’s revenue came from DailyHunt.
The startup bagged one of the biggest funding rounds of 2022, mopping $805 Mn in its Series J round from Canada Pension Plan Investment Board, Ontario Teachers’ Pension Plan Board, Luxor Capital, Sumeru Ventures, among others, at a valuation of $5 Bn. It has raised around $1.7 Bn across funding rounds till date.
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