Google-Backed VerSe Eyes the Big League with IPO Before FY27

VerSe Innovation, the Bengaluru-based tech firm behind popular platforms Dailyhunt, Josh, and Magzter, has officially set its sights on launching an initial public offering before March 2027. Announced on August 19, 2025, this move signals a renewed phase of growth and financial discipline for the Google-backed unicorn, which has raised over $2 billion from marquee global investors since its inception.

With a roadmap focused on profitability, operational transparency, and strategic expansion, VerSe is positioning itself as one of India’s most anticipated IPO candidates in the digital content and short-video space.

Key Highlights from the Announcement

• VerSe Innovation plans to go public before March 2027, as communicated to its institutional investors.
• The company expects to achieve break-even by the second half of 2025, following a series of internal reforms and financial recalibrations.
• Avendus Capital is likely to advise the IPO, continuing its role from previous funding rounds and acquisitions.
• VerSe’s investor roster includes Google, Microsoft, Carlyle Group, Baillie Gifford, Falcon Edge Capital, Goldman Sachs, and global pension funds like CPP Investments and Ontario Teachers’ Pension.

Financial Discipline and Audit Reforms

In FY23, VerSe faced scrutiny over revenue recognition and internal controls, with Deloitte identifying discrepancies that led to a downward revision of total income from ₹1,809 crore to ₹1,356 crore. Media reports also flagged potential round-tripping transactions involving Builder.ai, a UK-based AI startup, and reciprocal billing for services not rendered.

In response, VerSe implemented corrective measures and reaffirmed its commitment to financial discipline and operational efficiency. These reforms are seen as foundational steps toward building investor trust and ensuring regulatory compliance ahead of its public listing.

Strategic Growth and Platform Expansion

VerSe’s portfolio spans three major digital platforms:

• Dailyhunt: A vernacular news and content discovery platform serving regional language users across India.
• Josh: A short-video app competing in the creator economy space, with a focus on Tier 2 and Tier 3 markets.
• Magzter: A global digital newsstand acquired in April 2024, expanding VerSe’s footprint in international content distribution.

The company’s founders, Virendra Gupta and Umang Bedi, have emphasized their strategic focus on video content and regional user engagement, citing explosive growth from India’s next billion internet users.

Investor Confidence and Market Positioning

VerSe’s ability to attract and retain high-profile investors underscores its market potential. The firm’s largest funding round in April 2022 raised $805 million at a $5 billion valuation, led by CPP Investments, Ontario Teachers’ Pension, Luxor Capital, and Sumeru Ventures. Previous rounds included $650 million in 2021 from Google, Microsoft, QIA, Siguler Guff, and others.

The company’s IPO ambitions are backed by a strong advisory team, with Avendus Capital expected to guide the public offering. Neeraj Shrimali, Executive Director at Avendus, has played a key role in VerSe’s past fundraising efforts and strategic acquisitions.

IPO Outlook and Industry Implications

VerSe’s IPO will be closely watched by investors and industry analysts, given its unique positioning in India’s digital content ecosystem. The listing could:

• Set benchmarks for monetization in the short-video and vernacular content space
• Validate the viability of regional-first platforms in global capital markets
• Encourage other Indian tech firms to pursue public listings amid tightening regulatory norms

With profitability on the horizon and a diversified product suite, VerSe is poised to enter the public markets as a mature, reform-driven tech player.

Source: Financial Express, August 19, 2025.

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