Dailyhunt's parent company widens consolidated loss to Rs 410.2 crore

VerSe Innovation's revenue from operations has seen a 75.26% jump to Rs 267.6 crore from Rs 152.68 crore

e4m by exchange4media Staff
Published: Jun 25, 2021 7:04 PM  | 2 min read
VerSe

VerSe Innovation, the parent company of multi-lingual news app Dailyhunt, has widened its FY20 consolidated loss by 37.23% to Rs 410.2 crore from Rs 298.9 crore in the previous fiscal.

The company's revenue from operations has seen a 75.26% jump to Rs 267.6 crore from Rs 152.68 crore. The group derives its revenue from the online advertisement and subscription services through its Dailyhunt application and web application.

Total expenses have expanded 57% to Rs 720 crore from Rs 458 crore. The company spent Rs 137 crore on salaries and wages in FY20, which is a 41.2% increase compared to Rs 96.99 crore in the previous fiscal. Total employee benefit expense stood at Rs 155.2 crore, a 36.1% increase from Rs 114 crore. VerSe upped its advertising promotional expenses by 74% to Rs 372.9 crore from Rs 214.6 crore in the year ago period.

The company's total cash and bank balances stood at Rs 133.7 crore, compared to Rs 431.1 crore.

On a standalone basis, the company has reported a 215% increase in revenue from operations at Rs 37.29 crore in FY20, compared to Rs 11.83 crore in the previous fiscal. The company earned Rs 73.4 crore from Other income in FY20, which is an increase of 244% from Rs 21.3 crore in the year ago period.

The company's total income stood at Rs 110.7 crore, an increase of 233.4% from Rs 33.2 crore in FY19. The company's expenses remained flat at Rs 498.1 crore in FY20, compared to Rs 488.2 crore in the previous fiscal. Total loss for the fiscal under review decreased 15%  to Rs 387.4 crore from Rs 455 crore.

In its standalone balance sheet, the company noted that it has sold its investment in Eterno Infotech Private Limited and Rocket Science Innovations Private Limited. The company also said it has withdrawn the application made to Regional Director, South East Region, Hyderabad w.r.t merger of the company with its subsidiaries considering the fact that it is not a viable option currently since the pooling of resources would not be advantageous for the Companies and is unable to maximise shareholder value as expected.

VerSe Innovation had acquired Delhi-based Rocket Science Innovations in 2015. Rocket Science Innovations owned e-commerce price comparison and recommendation platform BuyT.in. Ver Se had acquired NewsHunt owner Eterno Infotech in 2012 from its founders Umesh Kulkarni and Chandrashekhar Sohoni. NewsHunt has since been renamed Dailyhunt.

Virendra Gupta, who is also the MD of VerSe Innovation, held 26.49% stake in the company, as on 31st March 2020. The overseas investors owned 58.26% stake, while individual Shareholders holding nominal share capital of Rs. 1 lakh held 1.09% shares. Individual Shareholders holding nominal share capital in excess of Rs.1 lakh held 5.74% stake. The remaining 8.43% was held by ESOP Trusts.

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