Dailyhunt parent VerSe to lay off 350 employees this month in push for profitability
Dailyhunt parent VerSe Innovation is laying off 350 employees this month as part of a broader strategy to accelerate investments in artificial intelligence (AI) and streamline operations.To drive this strategic transformation, VerSe will utilise AI for automating several manual processes to 'increase operational efficiency', the Bengaluru-based company said in a statement on Saturday.These initiatives are aimed at helping the company turn profitable by the end of this financial year.
VerSe joins other content-led startups that have cut workforces this year. This includes Google-backed vernacular media platform ShareChat, which laid off 5% of its staff in January, and Lightspeed-backed Pocket FM that let go of 75 employees amid a push for profitability. 'VerSe Innovation has been undergoing a strategic transformation to build a more agile, focussed, and future-ready organisation…To build a more future-ready organisation where talent is cross-leveraged across business units and resources are directed towards growth segments, the company will streamline its workforce by approximately 350 roles this month,' the company said.
'Building on this momentum, VerSe Innovation projects over 75% revenue growth in FY25, outpacing the anticipated 10-15% growth rate of the Indian digital advertising sector,' it said. 'Operational and structural efficiencies and a focus on growth drivers are actions directed to make the company profitable by the end of this fiscal year.'
The development was first reported by digital publication Entrackr.The current layoffs come two and a half years after the company laid off 150 employees as a cost-cutting measure.In FY24, VerSe's operating revenue fell 6.7% to Rs 1,029 crore. The company however narrowed its net loss by 54% to Rs 889 crore.
Last month, Deloitte flagged certain internal control weaknesses in VerSe's FY24 audit report. The auditor also noted that these material weaknesses did not impact its opinion on the consolidated financials. VerSe is backed by Canada Pension Plan Investment Board (CPPIB), Ontario Teachers' Pension Fund, James Murdoch's private investment firm Lupa Systems, and Z47 (formerly Matrix Partners). It has raised over $2 billion in funding since inception.
VerSe last raised $805 million in a funding round led by CPPIB, valuing the company at $5 billion. In addition to news aggregator platform Dailyhunt, VerSe also runs short video app Josh, which was launched in 2020 after the Indian government banned Chinese social media company TikTok in the country.
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