Verse innovation trimmed, 350 employees will be out, AI is being emphasized

Verse Innovation, which is counted among the large digital companies in India and owns large platforms like Dailyhunt and Josh, is going to pruning about 350 employees this month. The company says that this decision has been taken under a wide restructuring process, which aims to increase profitability and increase focus on Artificial Intelligence (AI).

The emphasis being given on AI

The company said in its statement released on May 10 that it is undergoing a “strategic transformation”, so that it can become more competent, focused and flexible for future challenges. The aim of this change is to increase investment in AI, simplify operations and mold the company’s strategy to the long -term goals.

Cost cuts and automation of processes

This trimming is part of the effort under which the company wants to automatically automatically cut operational expenses and improve structural efficiency. The company aims to reach a profitable position by the end of FY25 (FY 2025).

Improves financial situation, but revenue declines

According to VERSE’s financial report, the company’s revenue in FY24 was Rs 1029 crore, which was Rs 1104 crore last year. However, NET loss has come down from Rs 1909 crore to Rs 889 crore, which indicates that the deficit has come down. The company’s EBITDA deficit was Rs 710 crore. It is worth noting that earlier the company had said the revenue of FY24 1261 crore, which has now been revised and increased to 1029 crores.

75 percent revenue growth estimated in FY25

The company hopes that its revenue in FY25 will grow at a rate of more than 75 per cent, which is more than the estimated 10-15 per cent growth of India’s digital ad sector. To get this growth, Verse is working on many initiatives, such as Nexverse.Ai, an AI-based new platform, a subscription model made with Dailyhunt Premium Magzter and managing the platform for managing the subscription model and VERESE Collab Influence Campans.

Deloitte raised questions on internal disturbances

A few weeks ago, Deloitte pointed to several serious flaws in the internal financial control process of the verse. However, Deloitte also clarified that these flaws do not affect the credibility of the company’s main financial statements, that is, the company’s financial documents are still “true and fair”.

Despite heavy funding, IPO still in questions

VERSE raised $ 805 million (about 6,700 crore) in April 2022 under the leadership of Canada Pension Plan and Ontario Teachers’ Pension Plan Board. So far, the company has gained funding of more than $ 2 billion and is working on a plan to bring IPO. However, given the current situation, it is not clear whether the timeline of the IPO will change.

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