VerSe Innovation, the parent company behind the vernacular news aggregator Dailyhunt and the short-video platform Josh, has announced the acquisition of digital marketing firm Valueleaf Group in a strategic cash and equity deal.
This acquisition is a significant step for VerSe Innovation, expected to drive substantial growth, with projected additional revenue of $100 million and an anticipated 10% EBITDA margin by FY25, according to the company’s press release.
The acquisition will create strong synergies by combining VerSe Innovation’s advanced advertising technology stack and data management platform with Valueleaf’s expertise in performance data, extensive supply-side integrations, and industry-focused solutions. This integration aims to deliver enhanced Return on Ad Spend (ROAS) for advertisers, further strengthening VerSe’s market position.
“The acquisition of Valueleaf Group positions us for significant revenue growth,” said Umang Bedi and Virendra Gupta, co-founders of VerSe Innovation, in a joint statement. “By integrating Valueleaf’s data-driven insights with our ad tech platform, we expect a substantial improvement in advertising efficiency and effectiveness, leading to higher-value partnerships.”
This move follows VerSe’s acquisition of Magzter in April, a global digital newsstand with over 8,500 premium magazines and newspapers. This acquisition marked VerSe’s entry into premium content, reinforcing its ambition to become India’s largest digital media tech conglomerate.
To date, Dailyhunt has raised over $1.5 billion across several funding rounds, with its last valuation reaching $5 billion after securing $805 million in April 2022, led by the Canada Pension Plan Investment Board.
According to data from The Indiabizz, VerSe Innovation’s overall revenue grew by 57% year-over-year, reaching Rs 1,809 crore in FY23, up from Rs 1,151 crore in FY22. However, the company also reported losses of Rs 2,059 crore in FY23. The firm has yet to file its audited numbers for FY24.
