VerSe Innovation, the parent company behind popular Indian digital platforms Dailyhunt and Josh, has now made headlines with its acquisition of Magzter, the highly popular New York-based digital newsstand platform. This deal marks the Dailyhunt’s foray into the premium content market. The financial terms of the deal are yet to be disclosed.
This acquisition paves the way for the launch of “Dailyhunt Premium,” a subscription-based service offering users access to a vast library of high-quality content from established international publishers. This content will encompass over 60 languages, catering to a diverse range of interests beyond what is typically offered by ad-supported platforms. Dailyhunt Premium is also set to feature major publications like Time, The Economist, Vogue, and Forbes, specifically targeting India’s growing upper-middle class demographic. This segment of users increasingly seeks in-depth analysis, diverse perspectives, and a wider range of topics beyond the limitations of free content.
This move also complements VerSe’s existing portfolio, which includes the short-video platform Josh and upcoming initiatives like VerSe Collab (a tech-driven influencer marketplace) and VerSe NeXTChange (a programmatic audience network). The Dailyhunt-parent, valued at $5 billion in its last funding round, now aims to double its revenue and triple its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) within the next 18-24 months. This is where Dailyhunt, with its existing user base and high average daily usage time, comes in, and provides a strong foundation for achieving these growth targets. The addition of Magzter’s premium content and loyal subscriber base can help in this regard as well.
Previously, Verse Innovation relied solely on advertising revenue generated through Dailyhunt and Josh. By incorporating a subscription-based offering like Dailyhunt Premium, VerSe Innovation is actively expanding its income streams. This development provides a more sustainable financial foundation for future growth, especially considering the potential saturation and limitations associated with advertising revenue alone. For those who are unaware, subscription-based models offer a more predictable and recurring revenue stream, which can be crucial for long-term financial stability.
“This partnership opens up new avenues for delivering high-quality content experiences to users across India, further strengthening our goal of providing unparalleled digital reading experiences to our readers,” Girish Ramdas and Vijayakumar Radhakrishnan, co-founders of Magzter, commented on the matter. “The acquisition aligns seamlessly with our growth trajectory and enhances our ability to deliver premium content experiences to our ever-expanding user base. We will keep strengthening our capabilities and spreading our wings, leading the way in India’s digital content space,” Virendra Gupta and Umang Bedi, co-founders of VerSe Innovation, said.
Speaking more about Magzter, the 13-year-old brings a wealth of experience and a well-established user base to the table. Today, the platform boasts a collection exceeding 8,500 premium magazines and newspapers, catering to a wide range of interests. With a global user base exceeding 87 million, including over 1.1 million active paying subscribers in India alone, Magzter has carved out a niche as a leading platform for digital newsstand access. This established user base presents a valuable opportunity for Dailyhunt to expand its own user base and diversify its revenue streams. Dailyhunt, with its existing user base of over 350 million monthly active users primarily consuming free, ad-supported content, can leverage Magzter’s premium offerings to attract a new and potentially high-value user segment.
