Dailyhunt parent VerSe Innovation’s valuation falls 90% from $5 billion peak
Baillie Gifford values VerSe Innovation at $576 million, marking down its 1.3% stake by nearly 80% over 19 months
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Published: Oct 27, 2026 12:58 PM | 1 min read
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- Baillie Gifford has reduced the implied valuation of VerSe Innovation, the parent company of Dailyhunt, to $576 million, a significant drop from its peak valuation of $5 billion in 2022.
- The Schiehallion Fund, which manages Baillie Gifford's investment, reported a 27% decline in the value of its 1.3% stake in VerSe Innovation since January, and nearly 80% over the past 19 months.
- VerSe Innovation's operating revenue decreased by 40% to Rs 1,162 crore in FY26, although its net loss narrowed by 28% to Rs 699 crore due to reduced expenses.
- The company has faced challenges including a ban on real-money gaming affecting advertising revenue, loss of livestreaming income, and increased competition for regional-language audiences.
British investment firm Baillie Gifford has marked down the implied valuation of VerSe Innovation, the Bengaluru-based parent of news aggregator Dailyhunt, to $576 million, nearly 90% below its peak valuation of $5 billion in 2022.
The Schiehallion Fund, managed by Baillie Gifford, valued its 1.3% stake in VerSe Innovation at $7.47 million as of August 31. The value of the holding has declined 27% since January and nearly 80% over the past 19 months.
The implied company valuation is based on the fund's valuation of its investment rather than a fresh funding round. Baillie Gifford attributed the markdowns to company-specific execution challenges and the repricing of comparable listed companies.
VerSe Innovation's operating revenue fell 40% to Rs 1,162 crore in FY26 from Rs 1,930 crore in the previous fiscal year. However, its net loss narrowed 28% to Rs 699 crore during the year, supported by a reduction in expenses.
The company has faced multiple challenges across its business operations. The ban on real-money gaming in India affected Dailyhunt's advertising business and slowed growth at Valueleaf, VerSe's advertising technology business.
The company also lost livestreaming revenue following the end of its partnership with Tango, while intensifying competition for regional-language audiences added to the pressure on its business.
The latest valuation markdown reflects the challenges facing VerSe as it navigates a tougher operating environment, with declining revenue and increased competition weighing on its business prospects.
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