VerSe Innovation, the parent company of Dailyhunt, a popular Indian news aggregator app, made headlines when it announced its acquisition of Magzter, a digital newsstand platform. The deal, which marks VerSe’s largest acquisition to date, demonstrates the company’s commitment to serving the affluent audience.
Magzter, headquartered in New York and backed by Singapore Press Holdings, has gained significant traction with over 1 million paying subscribers in India and an active user base of 87 million globally. The platform offers users access to more than 8,500 magazine titles through its app, employing an all-you-can-consume model with annual subscription fees ranging from $20 to $30. By acquiring Magzter, VerSe gains a valuable distribution and technology partner.
Dailyhunt, valued at $5 billion and supported by prominent investors such as CPP Investments, Ontario Teachers Pension Plan, and Goldman Sachs, had been evaluating the deal with Magzter since last year. The Indian firm plans to launch Dailyhunt Premium, which will offer an ad-free experience along with Magzter’s extensive catalog. Additionally, Magzter will continue to operate independently as a standalone service.
Magzter’s partnerships with leading publishers like The New Yorker, The Economist, Vanity Fair, and Time have helped establish its reputation as a go-to platform for magazine enthusiasts. Dailyhunt aims to leverage Magzter’s vast catalog by introducing a personalized news feed that curates articles and stories from the digital newsstand app.
Umang Bedi, co-founder of VerSe, emphasized the value of this partnership in delivering high-quality content experiences to users across India. Magzter’s founders, Girish Ramdas and Vijayakumar Radhakrishnan, echoed this sentiment, expressing their commitment to continuing their work on Magzter following the acquisition.
VerSe is also making strides in improving its financial standing. Bedi stated that the company expects to achieve EBITDA profitability at a group level by next year. Additionally, VerSe has been in talks with local social media startup Koo for a potential acquisition, indicating the company’s focus on partnering with financially successful firms and scaling revenue.
The acquisition of Magzter by VerSe signifies the growing importance of curated digital content experiences. By adding Magzter to its portfolio, VerSe expands its reach and solidifies its position as a leading player in the Indian digital media landscape. As the company continues to make strategic moves and foster partnerships, it aims to provide unparalleled digital reading experiences to its readers.