Dailyhunt parent faces audit heat; Go Digit Q4 results

Time of India

28-04-2025

Dailyhunt parent faces audit heat; Go Digit Q4 results
Also in the letter:
Deloitte flags lapses in Dailyhunt parent VerSe Innovation's FY24 accounts
Issues raised:
Catch up quick:
Deloitte highlighted inadequate controls over supplier selection, purchase approvals, and payments.
It flagged a Rs 35-crore claim related to unexplained supplier invoices.
CFO Sandip Basu has reportedly resigned on account of health issues.
FY24 results:
Way ahead:
Go Digit General Insurance doubles net profit in Q4 FY25
Financial highlights:
Gross written premium: Rose to Rs 2,576 crore, up from Rs 2,335 crore in FY24.
Rose to Rs 2,576 crore, up from Rs 2,335 crore in FY24. Total expenses: Increased to Rs 2,426 crore from Rs 2,198 crore in Q4 FY24.
Increased to Rs 2,426 crore from Rs 2,198 crore in Q4 FY24. Total income: Grew to Rs 2,855.1 crore from Rs 2,692.5 crore in Q4 FY24.
Grew to Rs 2,855.1 crore from Rs 2,692.5 crore in Q4 FY24.
Solvency ratio: Improved to 2.24 from 1.61 year-on-year.
Company details:
India blocks Pakistani YouTube channels after Pahalgam terror attack
The channels:
Tell me more:
What else:
Also Read:
ETtech Explainer: Why Zepto founders are taking personal debt to boost Indian ownership
But why:
Byju's, which pursued a similar strategy, defaulted and now faces insolvency proceedings.
Pharmeasy, another startup with pledged founder shares, saw its valuation slashed by over 90%.
Broader strategy:
Ultrahuman in talks with WestBridge to raise $100-120 million after SoftBank deal falls through
Deal details:
Previous attempt:
Performance and outlook:
Audit firm Deloitte has raised multiple red flags over VerSe Innovation's FY24 finances. This and more in today's ETtech Top 5.■ India's Pak YouTube crackdown■ Ultrahuman eyes fresh dough■ Zepto founders' debt play, explainedDeloitte has identified issues in the internal controls of VerSe Innovation – the parent company of Dailyhunt and Josh – for the financial year ending March 31, 2024, stating that these lapses could potentially lead to material misstatements across the company's operations.The audit firm said VerSe did not have appropriate internal controls over the selection and evaluation of suppliers, approval of purchase orders and invoices, and payments.This could result in 'material misstatement in the company's trade payables and expense account balances and preferential payments to suppliers including misappropriation, it noted.Net loss reduced by 54% to Rs 889 crore; Operating revenue largely flat at Rs 1,029 crore.In response to the auditor's remarks, VerSe Innovation said the company was strengthening its processes by conducting a 'detailed workshop on the best practices and checklists' that will be followed by all the relevant personnel.Kamesh Goyal, founder, Go Digit General InsuranceGo Digit General Insurance reported a strong financial performance for the fourth quarter of FY25 (Q4 FY25), with net profit doubling to Rs 115.6 crore, compared to Rs 52.6 crore in the same period last year.Founded in 2017, Go Digit provides a broad range of insurance products across the motor, health, travel, property, marine, and liability lines. It listed on the stock exchange on May 23, 2024.On Monday, Go Digit's shares closed 3.8% higher on the BSE, finishing the day at Rs 308.8.India has banned several Pakistan-based YouTube channels following heightened tensions between the two countries after the Pahalgam terrorist attack on April 22.The ban targeted 16 channels, including those operated by Dawn News, Samaa TV, ARY News, and Geo News. Other blocked channels include The Pakistan Experience podcast and ones owned by cricket analyst Wasay Habib and journalists Syed Muzammil and Arzoo Kazmi. Collectively, these channels boast over 63 million subscribers.The Ministry of Home Affairs (MHA) recommended the ban, accusing the channels of spreading provocative, false, and misleading content, including narratives against India, its Army, and its security forces.As tensions escalated, India took further steps by holding the Indus Water Treaty 'in abeyance', closing its borders, cancelling visas for certain Pakistani nationals, and expelling diplomats.In response, Pakistan cancelled the Simla Agreement, halted trade with India, and restricted Indian flights in its airspace.Aadit Palicha and Kaivalya Vohra, founders, ZeptoZepto promoters Aadit Palicha and Kaivalya Vohra plan to raise Rs 1,500 crore in personal debt as their quick commerce player gears up for an Indian stock market listing.The company aims to comply with India's FDI norms before the IPO. While India permits 100% FDI in online marketplaces, online inventory sales are restricted to companies with majority Indian ownership. To qualify as an Indian-Owned and Controlled Company (IOCC), a firm must have at least 50% Indian ownership.Structuring debt Palicha and Vohra are adopting a rare approach for high cash-burn startups — pledging their founder shares.Zepto is also close to finalising a $250-million secondary sale led by private equity firms. Combined with the founders' planned stake purchase, these moves are expected to boost Indian ownership in Zepto by 8–10%.Mohit Kumar, CEO, UltrahumanUltrahuman is in advanced discussions with WestBridge Capital to secure a fresh investment of $100–120 million.If finalised, the funding round could value the Bengaluru-based wearables startup at approximately $500–550 million. The company plans to deploy the capital towards international expansion initiatives.Ultrahuman had previously explored a $35–40 million funding round with SoftBank, which ultimately fell through due to disagreements over the round size and company valuation.'At the time of the SoftBank discussions, which was more than seven to eight months ago, the company's scale was different. SoftBank proposed a smaller round at a lower valuation, which Ultrahuman disagreed with,' said a source familiar with the negotiations.In its January report, Ultrahuman posted sixfold year-on-year revenue growth in 2024, with an average profit before tax (PBT) margin of 11%. It expects PBT margins to rise to 20% as it expands its product range, launches new trials and expansion centres, and scales up its Texas UltraFactory.