VerSe Innovation Enhances Ad Tech with Strategic Acquisition of Valueleaf Group

VerSe Innovation, the parent company of popular news aggregator Dailyhunt and short video platform Josh, has announced the acquisition of a majority stake in Valueleaf Group, a leading data-driven digital marketing solutions provider. This strategic move, disclosed on August 28, aims to bolster VerSe Innovation’s ad exchange ambitions and diversify its revenue streams.

The acquisition reflects VerSe Innovation’s ongoing strategy to evolve beyond its traditional advertising model. The company is positioning itself to integrate software-as-a-service (SaaS) solutions and digital subscriptions into its portfolio, a shift highlighted by its recent acquisition of Magzter in April.

Strengthening Ad Tech and Expanding Reach

Founded in 2006 by Satish Saraf and Srikanth Bureddy, Valueleaf Group has built a robust performance data management platform that spans over 90% of Indian internet users. The Bengaluru-based firm provides a comprehensive suite of digital marketing solutions, including referral marketing app Share & Earn, fintech marketplace Buddy Loan, and programmatic advertising platform Whistle Feed.

This acquisition will enhance VerSe Innovation’s ad tech stack, integrating Valueleaf’s performance data and supply-side integrations into its existing advertising technology. This move aims to improve the company’s retargeting capabilities and offer superior Return on Ad Spend (ROAS) for advertisers, enhancing its full-stack advertising solutions.

Future Prospects and Financial Goals

VerSe Innovation co-founder Umang Bedi emphasized that the acquisition aligns with the company’s revenue growth and profitability objectives. The integration of Valueleaf Group is expected to contribute significantly to VerSe Innovation’s revenue goals, with projections to reach $100 million in revenue and achieve a 10% EBITDA margin by FY25.

In FY23, VerSe Innovation reported a 57% increase in revenues to Rs 1,809 crore, alongside a 34% reduction in its burn rate to Rs 1,448 crore. Bedi outlined ambitious plans to double revenues by FY25, driven by the Valueleaf Group and Magzter acquisitions, and highlighted ongoing efforts to reduce the company’s burn rate further.

Expanding Digital Ecosystem and Monetization

VerSe Innovation’s flagship news aggregator Dailyhunt continues to grow at over 25-30% annually and has been EBITDA positive. Josh, the company’s short video platform, currently generates revenue through ads and commerce, with the latter accounting for 65-70% of its income. The firm remains focused on acquiring revenue-generating and EBITDA-positive companies to drive its monetization efforts and expand its digital ecosystem.

Bedi noted that VerSe Innovation is actively pursuing additional acquisitions that meet its revenue and profitability criteria. The company, valued at around $5 billion after raising $805 million in funding in April 2022, has accumulated over $2 billion in total funding to date.

With this latest acquisition, VerSe Innovation is set to enhance its ad technology capabilities, drive revenue growth, and solidify its position in the competitive digital advertising landscape.