VerSe Innovation has raised $805 million in a fresh funding round led by global investors Canada Pension Plan Investment Board (CPP Investments), Ontario Teachers’ Pension Plan Board (Ontario Teachers’), Luxor Capital, Sumeru Ventures, and others. VerSe valuation touched $5 billion on account of this new funding.
The investment will focus on consolidating the company’s leadership position as the largest, fastest-growing local language AI-driven content platform in the country. Avendus Capital was the exclusive financial advisor to VerSe Innovation on the transaction.
This is one of the largest single fundraises by a startup this year. Existing investors Sofina Group, Baillie Gifford, and others will also participate north of their pro-rata in this round,
“In the backdrop of capital markets dropping, and us raising $805 million at a valuation of $5 billion with marquee investors makes it special, most of these are long term funds, and have backed companies through multiple stages. The quality of the investors are exceptional. These are the single-largest cheque by CPP and OTPP. This validates the work and effort we have put in to build in a strong business,” said Umang Bedi.
The $805 million investment follows close on the heels of a $650 million fundraise from Siguler Guff, Carlyle Group, Baillie Gifford, Falcon Edge Capital via Alpha Wave Ventures, Glade Brook Capital, Google, Microsoft, and Qatar Investment Authority taking the total capital raise in the past year to $1.5 billion.
VerSe Innovation plans to deepen AI/ML, Data Science Capabilities
VerSe also plans on both deepening and broadening its AI/ML and data science capabilities to further cement its leadership position across all user, engagement and retention metrics, drive deeper monetisation including influencers, ecommerce, and live streaming, and forays into Web 3.0 experiences across its local language creator base of over 50 million creators as well as its local language content ecosystem which experiences over 80 billion video plays per month.
“With COVID-19, and the rapid adoption of digital and mobile-first platforms, our business in the past 18 months has seen a significant growth. In March 2020, we had one app, now we have Josh’, India’s largest short video platform and ‘Dailyhunt’, India’s largest local language content platform coupled with ‘PublicVibe’, India’s fastest-growing hyperlocal video platform,” added Umang.
He explained VerSe Innovation’s proprietary technology platform serves one out of every two internet users in the country. Josh is the fastest growing and most engaged short-video app in India with over 150 million MAUs (monthly active users), the best DAU/MAU ratio in the industry of 49 percent and the highest retention.
