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Builder.ai and DailyHunt parent VerSe allegedly engaged in $60M round-tripping

YourStoryYourStory · 4m ago
Builder.ai and DailyHunt parent VerSe allegedly engaged in $60M round-tripping
Medial

Between 2021 and 2024, Builder.ai (now bankrupt) and VerSe Innovation (DailyHunt parent) allegedly engaged in $60M round-tripping — billing each other for services that often didn’t occur, to inflate revenue figures. The transactions, staggered to avoid detection, created fake revenue for fundraising. VerSe denies all allegations, claiming proper services and audits. Deloitte flagged VerSe for weak internal controls, and its FY24 filings saw a revenue restatement from ₹1,456 Cr to ₹1,029 Cr. Deloitte also highlighted severe internal lapses at Builder.ai, including unauthorized payments, missing audit trails, and crypto/AI mismanagement. Builder.ai, once valued at $1.5B, is under US investigation for misleading sales projections. VerSe’s CFO and Deloitte have since exited.

VerSe Innovation revenue jumps 88% in FY25; eyes profitability in H2 FY26

EntrackrEntrackr · 17h ago
VerSe Innovation revenue jumps 88% in FY25; eyes profitability in H2 FY26
Medial

VerSe Innovation, the parent company of Dailyhunt and short-video app Josh, reported improved financial performance for the fiscal year ending March 2025. According to the firm’s press release, operating revenue grew 88% during the fiscal year, while EBITDA burn reduced by 20%. VerSe Innovation’s operating revenue jumped to Rs 1,930 crore in FY25 from Rs 1,029 crore in FY24. Total revenue, including other income, stood at Rs 2,071 crore during the year, representing a 64% year-on-year growth. On a standalone basis, excluding acquisitions, the main firm’s revenue grew 33% to Rs 1,373 crore in FY25. VerSe reduced its EBITDA burn (excluding non-cash expenses) by 20% to Rs 738 crore in FY25 against Rs 920 crore in FY24. Its EBITDA margin improved to –38% in FY25 compared to -89% in FY24. Operating expenses also fell to 61% in FY25 from 77% in FY24. VerSe aims for EBITDA positivity and profitability at the group-level in the second half of FY26 through AI-led monetization, subscription growth, community engagement, and strategic acquisitions. The company plans to integrate acquisitions like Magzter and ValueLeaf to enhance monetization. VerSe serves over 350 million users and is backed by investors such as CPP Investments, OTPP, QIA, Carlyle, Google, and Microsoft. As India’s first unicorn in the local language content space, VerSe’s path to profitability by H2 FY26 is closely watched, with potential IPO plans in future years.

VerSe FY24 financials receive clean audit opinion from Deloitte

EntrackrEntrackr · 5m ago
VerSe FY24 financials receive clean audit opinion from Deloitte
Medial

VerSe FY24 financials receive clean audit opinion from Deloitte Deloitte had identified issues around revenue recognition, expense management, and internal controls, casting doubts on the company’s financial integrity. Deloitte has issued an audit opinion on Verse Innovation’s consolidated financial statements for FY24, stating that the financials present a fair view of the firm’s financial position and performance, according to a press release from the company. This comes as a major relief for VerSe Innovation, which had previously faced scrutiny regarding its internal control processes, particularly in FY23, when concerns were raised about material weaknesses in its financial operations. Deloitte had identified issues around revenue recognition, expense management, and internal controls, casting doubts on the company’s financial integrity. However, in its latest report for FY24, Deloitte reassured that despite acknowledging these control weaknesses, they did not impact their overall opinion on the company's financial statements, as per the company’s release. “... Their assessment highlights that, despite some internal control weaknesses, the financials remain a true and fair representation of our company’s health,” said a spokesperson from VerSe Innovation. The Bengaluru-based firm has committed to addressing these internal control issues and remains confident in its ability to break even by H2 FY25. Deloitte’s new report further clarified that while material weaknesses were noted, they did not affect the audit opinion. The audit included a special mention of retrospective adjustments made for figures from FY23, acknowledging the company's efforts to improve its financial reporting. VerSe reported total revenue of Rs 1,261 crore for the fiscal year ending March 2024 and reduced its EBITDA loss by 51% year-on-year to Rs 710 crore. It is projecting over 75% revenue growth for the fiscal year ending March 2025. “We are on track to achieve break-even in H2 2025, driven by product innovation and an AI-led expansion strategy. Our commitment to financial discipline and operational efficiency will enable us to navigate the challenges of the digital landscape and create long-term value for our stakeholders,” the spokesperson added.

VerSe cuts burn by 51% in FY24, eyes profitability in H2 CY25

EntrackrEntrackr · 6m ago
VerSe cuts burn by 51% in FY24, eyes profitability in H2 CY25
Medial

VerSe Innovation, the parent company of vernacular news aggregator Dailyhunt and social media app Josh, has reported a significant 51% reduction in EBITDA burn during the last fiscal year. The company’s EBITDA burn dropped from Rs 1,448 crore in FY23 to Rs 710 crore in FY24. The losses exclude non-cash expenses. Verse reported total revenue of Rs 1,261 crore in FY24, compared to Rs 1,809 crore in FY23. VerSe brought down its cost of services by 17% to Rs 1,155 crore and slashed business promotion expenses by 65%, from Rs 969 crore in FY23 to Rs 339 crore during the fiscal year ending March 2024. VerSe is projecting revenue growth of over 75% in FY25. The company’s growth plans are supported by its investment in AI-led tools and platforms. VerSe is also targeting break-even in the second half of calendar year 2025. VerSe was valued at $5 billion after raising a $805 million round in April 2022. The firm claims to have over 350 million users every month (MAU). Dailyhunt competes with Inshorts, whereas its short video app Josh competes with ShareChat’s Moj, YouTube Shorts, and Instagram, among others.

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