The parent firm of well-known content sites Dailyhunt and Josh, VerSe Innovation, has announced a major layoff, laying off about 350 employees this month. Since the company’s last reduction two and a half years ago, when 150 positions were removed, this move represents the largest round of layoffs. VerSe’s operating structure will now be in line with its long-term business objectives, profitability ambitions, and a renewed emphasis on artificial intelligence (AI) thanks to a comprehensive restructuring project.
According to company statements, this restructuring is not a reactionary measure but a “well thought through comprehensive plan” designed to accelerate investments in AI, streamline operations, and ensure the organization is agile and future-ready. The leadership at VerSe Innovation believes these changes are necessary to position the company for sustained growth in an increasingly competitive digital content landscape.
AI Integration and the Push for Profitability:
A central pillar of VerSe Innovation’s restructuring is the deep integration of AI across its business operations. CEO Umang Bedi has highlighted how AI is now embedded in the company’s content ecosystem-fueling recommendations, enhancing generative content capabilities, and driving better accessibility and monetization. The company is automating several manual processes, which is expected to increase operational efficiency and reduce costs as VerSe pushes toward profitability by the end of the current fiscal year.
This strategic shift comes at a time when many content-driven startups in India are making similar moves. Companies like ShareChat and Pocket FM have also scaled back staff in recent months, reflecting industry-wide pressures to improve financial performance and adapt to technological advancements. For VerSe, the focus on AI is not just about cost-cutting but also about building new revenue streams and leveraging technology to deliver superior user experiences.
In the financial year 2024, VerSe Innovation reported operating revenue of ₹1,261 crore, with a notable 51% reduction in EBITDA loss, which dropped to ₹710 crore from ₹1,448 crore the previous year. This improvement is largely attributed to strategic cost management, including reductions in service and marketing expenditures. The company’s net loss also shrank by more than half to ₹889 crore, indicating progress toward its goal of achieving profitability.
Strategic Investments and Growth Outlook
Looking ahead, VerSe Innovation is optimistic about its growth trajectory. The company projects over 75% revenue growth in the coming fiscal year, significantly outpacing the Indian digital advertising sector’s expected 10-15% expansion. This bullish outlook is underpinned by investments in new AI-led tools and platforms, including its AdTech initiative NexVerse.ai, the subscription-based Dailyhunt Premium (launched in partnership with Magzter), and VerSe Collab, which supports influencer campaign management.
The restructuring is also intended to facilitate better cross-leveraging of talent across business units and direct resources toward high-growth areas. By automating labor-intensive processes and optimizing operational expenditures, VerSe aims to create a leaner and more focused organization that can quickly adapt to market changes and technological disruptions.
VerSe Innovation’s growth strategy is reinforced by its strong backing from major investors, including the Canada Pension Plan Investment Board, Ontario Teachers’ Pension Fund, James Murdoch’s Lupa Systems, and Z47. The company has raised more than $2 billion to date, with its last funding round led by CPPIB valuing VerSe at $5 billion.
Challenges, Industry Context, and the Road Ahead
Despite the positive outlook, VerSe Innovation faces challenges common to many tech-driven companies undergoing rapid transformation. Last month, Deloitte, the company’s auditor, pointed out some internal control weaknesses in its fiscal 2024 audit report, though these did not affect its overall opinion on the consolidated financial statements. Ensuring robust governance and compliance will be crucial as the company navigates this period of change.
The job cuts at VerSe place it alongside other major players in India’s digital content industry that have resorted to layoffs amid a broader push for profitability and operational efficiency. The company’s leadership maintains that these measures are essential for building a more agile and sustainable business, capable of leveraging AI to drive innovation and long-term value.
As VerSe Innovation moves forward with its restructuring and AI-led transformation, the company is positioning itself to capitalize on emerging opportunities in digital content, advertising technology, and influencer marketing. The focus on automation, efficiency, and strategic investment signals a commitment to not just surviving, but thriving in a rapidly evolving digital economy.
For the affected employees, the layoffs represent a challenging transition, but for VerSe Innovation, this restructuring marks a pivotal step toward building a future-ready organization. As the company continues to invest in AI and streamline its operations, its ability to deliver on ambitious growth targets and achieve profitability will be closely watched by industry stakeholders and investors alike.
