VerSe Innovation Announces Workforce Reduction for Strategic Transformation

VerSe Innovation has revealed plans to cut approximately 350 roles this month as part of its endeavour to align operations with its long-term business objectives. This decision marks the company’s first layoffs in two and a half years, following a previous reduction of 150 employees during cost-cutting initiatives.

A company spokesperson mentioned, “This strategic transformation is part of a thoroughly considered plan aimed at accelerating investments in AI, streamlining operations, and implementing actions to ensure the company’s strategy aligns with its long-term priorities and growth.”

AI Integration in VerSe Innovation

During a recent discussion with Startup Superb, VerSe CEO Umang Bedi highlighted that VerSe Innovation has successfully integrated AI across its content ecosystem. The utilisation of AI for large-scale recommendations and generative capabilities aims to enhance accessibility, user engagement, and monetisation.

Adapting Operations and Cost Efficiency

As part of its ongoing operational changes, VerSe Innovation is leveraging AI to automate manual routines and reduce costs, aiming for profitability by year-end. In addition, the company intends to increase revenue through its own initiatives and by acquiring other businesses, with aspirations of going public in the future.

Financial Performance and Growth Expectations

In the fiscal year 2024, VerSe Innovation cut its EBITDA burn by 51%, reducing it to Rs 710 crore from Rs 1,448 crore in fiscal year 2023. The improvements were attributed to strategic cost management, which included cuts to service and marketing expenses. The overall revenue for FY24 reached Rs 1,261 crore.

Looking ahead, VerSe Innovation anticipates over 75% revenue growth in FY25, surpassing the anticipated 10-15% growth in the Indian digital advertising sector. This projected growth is bolstered by the company’s investment in AI-driven technologies and platforms, including the AdTech platform NexVerse.ai, the Dailyhunt Premium subscription service partnering with Magzter, and VerSe Collab for managing influencer campaigns.