VerSe Innovation, the parent company of content platform Dailyhunt and short video app Josh, announced it will cut approximately 350 jobs as part of a broader restructuring effort that includes automating several manual processes to achieve efficiency and profitability by the end of this financial year.
The company is doubling down on automation to replace manual processes, in line with global trends that favour leaner, tech-driven operations. The layoffs, the company said, are part of a “well thought through comprehensive plan” designed to align VerSe’s strategy and organisational structure with its long-term priorities and growth objectives.“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,” a company spokesperson said.
The projected growth is expected to be driven by the company’s recent AI-powered product initiatives, including NexVerse.ai, its AI-driven AdTech platform; Dailyhunt Premium, a subscription product launched in partnership with Magzter; and VerSe Collab, its influencer campaign management suite.
In FY24, VerSe reported a 51% reduction in Ebitda burn, bringing it down to ₹710 crore from ₹1,448 crore in FY23. This was largely attributed to significant cost-cutting in service and marketing expenditures. The company’s revenue for FY24 stood at ₹1,261 crore.
However, the restructuring comes at a time when VerSe is under scrutiny for its financial governance. Less than a month ago, auditors from Deloitte Haskins & Sells flagged several material weaknesses in the company’s internal financial controls for FY24.
According to the auditors, VerSe lacked adequate controls in critical financial processes, including supplier evaluation, purchase order approvals, invoice processing, and verification of service receipts.Deloitte warned that these gap could result in material misstatements in trade payables and expenses and may elevate risks associated with preferential payments and asset misappropriation.
These concerns were raised just weeks after the resignation of group chief financial officer Sandip Basu, who stepped down citing health reasons. The company is currently in the process of appointing his successor.