In a surprising turn of events, one of India’s leading tech companies has seen a sizable slash to its valuation. Dailyhunt, the popular news aggregation app, is owned by Bengaluru-based VerSe Innovation. According to a private investor note reviewed by this publication, VerSe is now estimated to be worth $2.9 billion – a massive 42% decrease from its previous valuation of $5 billion.
The markdown appears in an update from 360 One, a wealth and asset management firm that holds a small stake in VerSe. While VerSe has grown rapidly since raising $805 million early last year, 360 One believes the current valuation better reflects the startup’s standing. However, VerSe maintains their valuation remains at the prior $5 billion level based on ongoing high growth.
It’s understandable for perceptions to differ as valuations are estimates. VerSe shared they have doubled revenue and cut costs by over 30% in the past year alone. Such strong growth signals their valuation should have risen substantially, contradicting the lower estimate.
Beyond Dailyhunt, VerSe’s portfolio includes short video platform Josh and other products. They have a prestigious lineup of backers demonstrating long-term confidence like Ontario Teachers, CPP Investments and Goldman Sachs. With rock-solid growth and support, VerSe is primed for further success regardless of short-term valuation fluctuations. Their down-round discount serves as a reminder that private estimates can stray from facts on the ground for high-flying companies.
