VerSe Innovation acquires digital marketing company Valueleaf Group
This acquisition is expected to help VerSe get a stronger foothold in the digital advertising market, with a target of an additional $100 million in revenue for FY25.
Dailyhunt parent has acquired Bengaluru-based digital marketing company Valueleaf Group in a cash-and-stock deal for an undisclosed value.
This is the second acquisition by VerSe this year after acquiring digital newsstand Magzter in April earlier. The acquisition of Valueleaf is expected to create an “ad exchange”, which is expected to drive better performance outcomes & returns for its advertisers.
Talking to YourStory, VerSe Innovation co-founder Umang Bedi said, “We will now be able to bring better return on investment for the advertisers through the combined strengths of VerSe and Valueleaf.”
VerSe also claimed that this acquisition will bring an additional $100 million in revenue and 10% EBITDA margins for FY25.
According to Bedi, the digital advertising market in India is growing in double digits, but most of the money is being spent on performance driven marketing, where there are expectations of certain returns on investment.
Valuleaf brings several advantages to the table, including its performance management platform, integration across websites and apps, and industry focused solutions delivered to different verticals of advertisers, VerSe said in a statement.
“We were always focused on how to simplify the user acquisition and have moved from services approach to more solution based framework,” Valueleaf Co-founder Srikanth Bureddy said.
In addition, VerSe Innovation aims to boost revenue and advertiser wallet share, enhancing performance and ROI while increasing average revenue per user, the statement added.
VerSe Innovation was founded in 2007, with the company's focus in the initial years being around its mobile value-added services business. Dailyhunt was established in 2016, and currently has around 350 million users.
According to Bedi, the company is expecting to maintain a healthy double digit growth rate in revenues and achieve breakeven by FY25.
VerSe Innovation, which has raised close to $2 billion in funding till now, has a portfolio of investors like CPP Investments, Ontario Teachers Pension Plan (OTPP), Qatar Investment Authority (QIA), Goldman Sachs, Sequoia Capital India, Google, and Microsoft, among others.
Edited by Jyoti Narayan