VerSe Innovation Acquires Valueleaf Group to Strengthen Digital Ad Market Presence
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| VerSe Innovation Expands Digital Ad Market Presence with Acquisition of Valueleaf Group Image credit: VerSe |
VerSe Innovation, the Indian content tech unicorn known for owning local language news aggregator Dailyhunt, digital newsstand platform Magzter, and short-video app Josh, has acquired digital marketing firm Valueleaf Group in a cash and equity deal.
This acquisition is part of VerSe's strategy to expand its presence in India's rapidly growing digital ad space and build a robust retargeting platform, competing with major players like Google and InMobi.
India's Booming Digital Ad Market
India’s digital ad spending is on the rise as more people consume content across online platforms. As the world's most populous country and the second-largest smartphone market after China, over 50% of India's population actively uses the internet. According to market consultancy firm Redseer, digital advertising in India is expected to outpace traditional advertising, capturing a 60% market share by the financial year 2028.
Globally, digital ad markets are shifting towards programmatic performance marketing, offering better value for advertisers.
Valueleaf's Role in VerSe Innovation’s Growth
Bengaluru-based Valueleaf serves customers in markets such as India, the U.S., and the UAE. The firm has targeted ads to over 90% of Indian internet users, which is more than 600 million people. Additionally, Valueleaf has access to data from 200 to 300 million installers and downloaders and conversion data for 60 to 80 million online shoppers across various categories.
The company has also integrated with over 50,000 websites, more than 1,000 apps, and all leading smartphone brands in India, offering vertical-specific solutions for sectors like banking, financial services, and insurance, as well as for small and medium-sized businesses.
Valueleaf's Impact on VerSe's Ad Tech Strategy
Before acquiring Valueleaf, VerSe had developed its in-house ad tech stack, which primarily served ads on its own platforms, including Dailyhunt and Josh. In May, VerSe launched a brand-facing platform called NexVerse.ai to expand its ad tech offerings to external brands.
The acquisition of Valueleaf will enhance VerSe’s capabilities by adding thousands of supply-side integrations, broadening its reach across various digital destinations.
Financial Performance and Future Prospects
Financial terms of the Valueleaf acquisition were not disclosed. However, VerSe co-founder Umang Bedi mentioned that the deal aligns with VerSe’s projected revenue of $100 million and 10% EBITDA for the current year.
In the financial year 2023, Valueleaf generated approximately $36 million in revenue with a 5% EBITDA. The firm is expected to experience significant revenue growth this year, with an EBITDA of around 6%.
VerSe Innovation's Rapid Expansion
This acquisition follows VerSe's recent purchase of Apple News+ competitor Magzter, just four months ago. VerSe exited June with an annual recurring revenue rate of $87 million.
The startup’s revenue has grown by over 81%, reaching approximately $173 million to $179 million, while its burn rate has declined by 40% to $215 million, following a previous revenue report of $95 million to $107 million and a burn of $358 million three years ago.
Valueleaf's Strong Market Position and Future Potential
Valueleaf was previously acquired by financial markets research company CapitalVia Global Research in 2013.
Despite never raising external capital, Valueleaf has established a strong market presence, particularly in four key verticals: gaming, online commerce, banking and financial services, and digital-native brands. These sectors account for 80% of ad spending on performance marketing, making Valueleaf a valuable addition to VerSe’s growing portfolio.
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