VerSe Innovation Gets A Clean Audit Chit By Deloitte On FY24 Financials

VerSe Innovation, the parent company of India's largest news app Dailyhunt and short-video platform Josh, on Wednesday, said that its long-term audit firm Deloitte has given a clean audit opinion to the company for the financial year 2024 on fair practice and performance.

For the fiscal year ending March 31, 2024, Deloitte provided a clean bill of health for VerSe's FY24 consolidated financial figures, affirming them as "true and fair."

While the audit firm identified some of the internal weaknesses, their report clearly said that these findings do not impact their opinion on the consolidated financial statements.

VerSe, a Bangalore-based company, which has garnered over $2 billion in funding from prestigious investors such as Canada Pension Plan Investment Board (CPPIB), Ontario Teachers' Pension Fund, and Lupa Systems, among others, was valued at nearly $5 billion after its last funding round in 2022 led by CPPIB.

"We are fully committed to strengthening our internal controls and remain confident in our plan to achieve break-even in the second half of this fiscal year." VerSe Innovation's spokesperson said in response to the recent audit findings.

Deloitte's report also clarified that these issues do not detract from the overall "true and fair" assessment of VerSe's consolidated financial statements for FY24. The report further clarifies that the audit firm has considered the material weaknesses identified before giving a clean audit opinion about the company.

VerSe Innovation, with its family of apps focused on Bharat, is the first unicorn in tech for local languages. It reported a total revenue of Rs 1,261 cr, with an additional Rs 232 Cr from non-operating income in FY24.

The tech unicorn has acquired several other companies like digital marketing solutions provider Valueleaf Group and the New York-based digital magazine store Magzter to its portfolio, aiming to enhance its English language content offerings. Founded by Virendra Gupta and later joined by ex-Facebook India MD Umang Bedi, VerSe's outlook for the coming year looks stable.

Company Outlook Remains Positive

Entering the fiscal year 2025, VerSe Innovation predicts a surge in revenue growth, with expectations to surpass 75%. This forecast starkly contrasts the anticipated growth rate of India's digital advertising sector, which is estimated to hover between 10-15%.

In the forthcoming period, the company has set its sights on reaching a financial milestone by achieving break-even in the second half of 2025. This objective will be realized through a strategic blend of product innovation, the integration of AI-driven automation, and an aggressive push for revenue expansion.

The company's ambitious revenue growth projection is indicative of its confidence in outperforming the broader digital advertising market in India.

Carlyle Group, Goldman Sachs, Falcon Edge Capital, Google, Microsoft, Lupa Systems, Luxor Group, Sofina, B Capital Group, IIFL, Kotak, Edelweiss and Omidyar Network among others are as existing investors of the company.