Verse Innovation Raises $450M for Dailyhunt & Josh Expansion

VerSe Innovation Secures $450 Million+ in New Funding

VerSe Innovation, the company behind the widely-used news platform Dailyhunt and the short-form video application Josh, announced on Thursday a successful fundraising effort exceeding $450 million. This investment arrives only five months following a previous $200 million round, signaling strong investor confidence as the Indian startup aims for global expansion.

Investment Details and Valuation

The Series I funding round for VerSe Innovation was led by Siguler Guff, Baillie Gifford, and affiliates of Carlyle Asia Partners Growth II, alongside participation from existing investors including Sofina Group, Qatar Investment Authority, and BCap.

According to a company statement, VerSe Innovation’s valuation has experienced a doubling in the last five months, though the precise figure remains undisclosed. Previously, the startup achieved a valuation exceeding $1 billion during its Series H funding round. Update: Sources indicate the current valuation is approaching $3 billion.

User Growth and Market Position

The startup, which benefits from backing from Google and Microsoft, reports that Josh has attracted over 115 million monthly active users. A significant portion of these users, approximately 56 million, engage with the app on a daily basis.

Dailyhunt, the company’s flagship news aggregator, boasts an even larger user base, exceeding 300 million monthly active users.

Competitive Landscape

Josh is a key player in the competitive short video market, contending with platforms like Moj and MX TakaTak. These applications gained prominence after the Indian government banned TikTok in mid-2020 due to security concerns, creating an opportunity for domestic alternatives.

ByteDance, TikTok’s parent company, had identified India as its most substantial international market, having amassed over 200 million monthly active users prior to the ban.

Moj, operated by ShareChat and backed by Tiger Global, claims over 100 million users and was recently valued at $2.88 billion. MX TakaTak’s parent company, MX Player, is currently in discussions with investors to secure funding that would value the platform at over $1 billion, according to informed sources.

Expansion Strategy and Technological Investment

VerSe Innovation’s strategy centers on developing a suite of applications catering to users in numerous local languages. Dailyhunt currently delivers content in 14 languages, sourced from over 100,000 content partners and creators.

The company intends to replicate this multilingual approach as it expands into international markets.

Furthermore, VerSe Innovation plans to invest in enhancing its Artificial Intelligence (AI) and Machine Learning (ML) capabilities to deliver increasingly personalized user experiences.

Broader Trends in Indian Startup Funding

This funding round occurs during a period of record-breaking capital inflow into Indian startups from prominent investors. India, the world’s second-largest internet market, has seen the emergence of over 20 unicorns this year, a significant increase from 11 in the previous year and 6 in 2019.

Some investors are also increasing their focus on the South Asian market following regulatory changes in China, which have resulted in substantial financial losses in recent weeks.