As part of a larger “strategic” restructuring initiative, VerSe Innovation, the parent company of DailyHunt and Josh has terminated nearly 350 employees.

 A company spokesperson explained in a statement that the layoffs were due to “workforce realignment” aimed at accelerating AI investments, streamlining operations, and concentrating on long-term priorities and growth.

“This month, the company will reduce its workforce by around 350 roles in order to establish a more future-ready organization that cross-leverages talent across business units and aligns resources with growth segments,” the spokesperson added.

VerSe announced its intention to concentrate on automating various “manual processes” in order to enhance operational efficiency and create a “more future ready organisation.”

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“VerSe Innovation has been undergoing a strategic transformation to build a more agile, focused, and future-ready organisation.” This strategic transformation is part of a carefully considered comprehensive plan aimed at accelerating investments in AI, streamlining operations, and taking coordinated actions to align the company’s strategy and structure with its long-term priorities and growth,” the spokesperson said.

The unicorn is aiming to enhance its revenue both “organically” and via strategic acquisitions, with aspirations for a future stock market listing. “Actions aimed at ensuring the company is profitable by the end of this fiscal year include operational and structural efficiencies and a focus on growth drivers,” the spokesperson added.

VerSe asserted that it decreased its EBITDA burn by 51% to INR 710 Cr in FY24 from INR 1,448 Cr in FY23 through cuts in service and marketing costs.  It further stated that the total revenue for FY24 amounted to INR 1,261 Cr.

Nonetheless, VerSe’s financials for FY24 have generated disputes within the company.  According to a report by media from the previous month, Deloitte, the auditor, pointed out vulnerabilities in the internal financial controls of Josh’s parent company in its FY24 audit report. These included problems related to supplier selection, expense provisioning, revenue recognition, management of virtual assets, and control of IT systems.

Umang Bedi, the cofounder and CEO of VerSe, stated to media that the financials were accurate and presented a clean report, although he acknowledged that the company’s controls were lacking.

Despite this, VerSe anticipates over 75% year-on-year revenue growth in FY25 due to investments in AI-driven platforms like the adtech service NexVerse.ai and the subscription offering Magzter, among others.

In FY24, VerSe’s net loss decreased by over 56%, amounting to INR 814.8 Cr, compared to INR 1,878.4 Cr in the previous year.  Meanwhile, the operating revenue of the company decreased by 8.8% to INR 954.7 Cr in the fiscal year being reviewed, down from INR 1,046.8 Cr in FY23.

It is worth mentioning that VerSe Innovation has previously dismissed employees.  After securing a massive $805 million funding round, the company let go of about 150 employees in November 2022, just months later.