VerSe Innovation, a content tech unicorn in India, has made a strategic acquisition of digital marketing firm Valueleaf Group to strengthen its presence in the Indian digital ad space. This move will allow VerSe to compete with giants like Google and InMobi in the growing market of digital advertising in India.
India’s digital ad spending is on the rise as more people consume content online. With over 50% of its population actively using the internet, India is the second-largest smartphone market in the world after China. Redseer, a market consultancy firm, predicts that digital advertising will capture a 60% share of the advertising market in India by the financial year 2028, surpassing traditional advertising.
Currently, Google is the preferred choice for many businesses in India when it comes to digital advertising. However, there is a need for more platforms to serve the growing demand. VerSe’s acquisition of Valueleaf allows it to expand its reach and attract businesses looking to buy digital ads across multiple platforms.
Valueleaf has a strong presence in markets such as India, the U.S., and UAE. With over 600 million people targeted by its ads, Valueleaf has already reached more than 90% of Indian internet users. It also has valuable data on installers, downloaders, and online shoppers, making it an attractive asset for VerSe.
Valueleaf’s expertise lies in gaming, online commerce, banking and financial services, and digital-native brands. These are the verticals that spend the most on performance marketing, making Valueleaf’s capabilities a valuable addition to VerSe’s offerings.
Before the acquisition, VerSe had developed its own ad tech stack, limiting ad serving to its own platforms. However, with Valueleaf, VerSe can expand its ad tech platform to external brands. Valueleaf brings thousands of supply-side integrations to the table, enhancing VerSe’s ad tech capabilities.
The financial terms of the deal were not disclosed. However, VerSe co-founder Umang Bedi revealed that the acquisition was based on VerSe’s forecast of reaching $100 million in revenue and 10% EBITDA this year. Valueleaf’s revenue for the financial year 2023 was approximately $36 million, with an EBITDA of 5%. Bedi expects significant revenue growth and an EBITDA of about 6% this year.
This acquisition comes just four months after VerSe acquired Magzter, a digital newsstand platform. VerSe’s revenue has been steadily growing, reaching an annual recurring revenue rate of $87 million. The company reported revenue growth of over 81% and a decrease in burn rate by 40% in the past year.
Overall, VerSe’s acquisition of Valueleaf positions the company to become a major player in the Indian digital ad space. With its expanding portfolio of platforms and its focus on performance marketing, VerSe is well-positioned to capture a significant share of the growing digital advertising market in India.