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

EntrackrEntrackr · 3m 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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VerSe to lay off 350 employees amid strategic AI investment

EntrackrEntrackr · 1m ago
VerSe to lay off 350 employees amid strategic AI investment
Medial

VerSe to lay off 350 employees amid strategic AI investment VerSe Innovation announced it will reduce its workforce by approximately 350 roles as part of its strategic transformation to align operations with long-term business priorities. The company, which last conducted layoffs two and a half years ago, is focusing on AI to automate tasks and cut costs to become profitable by the end of the year. “This strategic transformation is a part of a well-thought comprehensive plan aimed at accelerating investments in AI, streamlining operations, and aligning the company's strategy and structure with its long-term priorities and growth,” said a company spokesperson. CEO Umang Bedi mentioned integration of AI for recommendations and generative AI to enhance accessibility, engagement, and monetization. The company plans to grow revenue through acquisitions with the goal of going public. In FY24, EBITDA burn was reduced by 51% to Rs 710 crore from Rs 1,448 crore in FY23 due to strategic cost management. FY24 revenue stood at Rs 1,261 crore. VerSe expects over 75% revenue growth in FY25, supported by investments in AI-driven tools, including NexVerse.ai, Dailyhunt Premium, and VerSe Collab.

VerSe FY24 financials receive clean audit opinion from Deloitte

EntrackrEntrackr · 2m 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 denies revenue manipulation charges, calls claims baseless and defamatory

EntrackrEntrackr · 1m ago
VerSe denies revenue manipulation charges, calls claims baseless and defamatory
Medial

VerSe Innovation, the parent firm of Dailyhunt and Josh, has categorically denied allegations of financial impropriety involving UK-based Builder.ai, calling them “factually incorrect, baseless, defamatory, and misleading.” In a telephonic interview with Entrackr, VerSe’s Co-Founder and Chief Executive Officer, Umang Bedi, dismissed the accusations and shared actual AWS Portal monthly usage backed by monthly invoices from Builder, cloud services historic Jira tickets, custom app development environment proof on Builder Home Portal, 26+ version releases, 18+ upgrades and patches and ad server campaigns with campaign tracking viewability and CTR metrics along with sample invoices issued to Builder.ai for advertising services. These invoices, the company claims, are part of a fully auditable trail and align with the revenues declared in its financial statements. “Any insinuation that VerSe colluded with Builder.ai to inflate revenues, engaged in reciprocal billing without corresponding services, or manipulated invoicing practices to avoid suspicion is entirely false and irresponsible,” the company said in an official statement. VerSe clarified that over the past five years, it had availed services worth $80 million from Builder.ai, which included AWS infrastructure, cloud services, custom software and application development. These included hyperscaler AWS cloud deployment, system migration, and custom app development. During the same period, Builder.ai engaged VerSe for advertising and promotional services, paying a total of $53 million, creating a clear imbalance in the trade. “All revenues and expenses recorded were for legitimate services rendered and delivered—either directly or through subsidiaries,” the company said, adding that all payments were appropriately received or made and verified by third-party auditors. The company further pointed out that each transaction involving Builder.ai underwent extensive scrutiny during its statutory FY24 audit. “Each such transaction was validated and checked thoroughly,” the company added. The audit concluded with an unmodified opinion, indicating that VerSe’s financials presented a true and fair view in accordance with Indian Accounting Standards. While the auditors flagged some internal control weaknesses in the standalone reporting, VerSe emphasized that this did not impact the financial accuracy of the statements. “These material weaknesses... do not affect our opinion,” the audit report clarified. VerSe stated it reserves the right to pursue legal remedies against those propagating what it deems to be falsehoods. “We operate with transparency and legal compliance, and our records can withstand any examination,” the spokesperson added. With the controversy “behind us,” VerSe said it is now focused on achieving breakeven in H2 FY26, driven by its AI-first product suite—NexVerse.ai, Dailyhunt Premium, Josh Audio Calling & Stories, and VerSe Collab.

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