VerSe Innovation Reports 88% Revenue Growth, Eyes Profitability in H2 FY26

VerSe Innovation , India’s leading AI-driven local language technology platform, reported robust financial performance for FY25, with revenue growth of 88% year-on-year and notable operational improvements. The company is now targeting group-level profitability in the second half of FY26.

Strong Revenue and Operational Gains

According to the audited accounts presented at the company’s Annual General Meeting, VerSe’s revenue from operations grew from ₹1,029 crore in FY24 to ₹1,930 crore in FY25, while total revenue rose 64% to ₹2,071 crore. Excluding acquisitions, revenue from operations increased 33% to ₹1,373 crore.

The company also reduced its EBITDA burn by 20% year-on-year, from ₹920 crore in FY24 to ₹738 crore, improving the EBITDA margin from –89% to –38%. Cost efficiency measures contributed significantly, with cost of services falling from 112% to 77% of revenue from operations, and other operating expenses (excluding non-cash items) dropping from 77% to 61%.

Metric (In INR Cr)	FY24	FY25	% Change
Total revenue	1,261	2,071	+64%
Revenue from Operations	1,029	1,930	+88%
Revenue from operations (ex. acquisitions)	1,029	1,373	+33%
EBITDA % (ex. non-cash expenses)	-89%	-38%
Cost of services (% of revenue)	112%	77%
Cost of services (& ex. server & software charges)	83%	56%
Other Opex (ex. non-cash)	77%	61%

Path to Profitability

VerSe Innovation expects to achieve break-even and profitability in H2 FY26, driven by multiple strategic initiatives. Key drivers include AI-led monetisation through its NexVerse.ai programmatic AdTech engine, expansion of Dailyhunt Premium subscriptions via Magzter integration, and enhanced creator engagement through Josh Audio Calling and VerSe Collab. Strategic acquisitions such as Magzter and ValueLeaf are also intended to deepen monetisation across both B2B and consumer ecosystems.

Looking Ahead

With a strong capital base and focus on AI-powered innovation, VerSe Innovation is positioning itself to lead the next wave of digital growth in India. Its platforms, Dailyhunt and Josh, reach over 350 million users, providing content in local languages and short-form videos. The company has attracted investments from global and domestic investors, including CPP Investments, Sequoia Capital India, Google, Microsoft, and Goldman Sachs.

As VerSe continues to expand its AI capabilities and diversify revenue streams, the firm aims to sustain growth while moving toward operational profitability, signalling potential stability for stakeholders in the competitive local language tech sector.

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