FDI cap forces Dailyhunt to restructure operations
According to reports, the company has been diversifying into multiple categories
With the government asking digital news platforms to comply with the 26% FDI cap, news aggregator platform Dailyhunt has set in motion the process of restructuring its operations.
Ver Se Innovation, the parent company of Dailyhunt, has raised Rs 73 crore in primary capital from B Capital Group, an investment firm founded by Facebook co-founder Eduardo Saverin. The latest round of funding pegs the company’s valuation at $1 billion.
The company was valued at $600 million when it raised Rs 180 crore in April in its Series G round led by Falcon Edge Capital, which also saw participation from Goldman Sachs, Sofina, and ByteDance.
The company counts Falcon Edge, Matrix Partners, ByteDance, Goldman Sachs, and Sofina as its investors.
One of Dailyhunt's investors ByteDance also owns short-video content platform TikTok, which was banned by the Indian government at the height of Indo-China border tension. Interestingly, Ver Se Innovation ventured into this space with the launch of a short video app Josh in July.
According to a report in The Economic Times, the company has restructured its business operations as it diversifies into multiple categories. Dailyhunt operates three subsidiaries including Eterno Infotech, Rocket Science Innovations, and Greynium Information.
When contacted, Ver Se Innovation founder Virendra Gupta refused to comment on the matter.
As per a February valuation report, Ver Se Innovation has classified itself as a company that is in the business of designing, developing, researching vertical search and recommendation services. It also stated that it engages in the development of software tools, products, and services for business analytics, services for internet content providers, advertising network, m-commerce, web telecom, etc.
As reported earlier, the government's decision to cap foreign direct investment (FDI) in digital news at 26% will force companies to either set up shop outside India or restructure their shareholding by bringing down foreign holding to 26%.
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