Mumbai: VerSe Innovation, the parent of news aggregator Dailyhunt, has acquired US-based subscription service Magzter, for an undisclosed amount.
The deal allows VerSe to enter the premium subscription segment, the company said in a statement on Thursday.
Magzter has access to over 8,500 digital premium magazines and newspapers.
With this acquisition, Dailyhunt’s revenue model expands from pure advertising to include subscription-based revenue streams, the company said.
Avendus was the adviser to this transaction.
Dailyhunt Premium, the subscription-based offering, will provide users access to international publishers in over 60 languages, including English, French, Italian, Japanese, Russian, and Spanish.
This includes publications such as Time, Newsweek, Fortune, The Economist, Forbes, Reader’s Digest, Cosmopolitan, Vogue, Maxim, Elle, Vanity Fair, New Yorker, and Bazaar across their respective Indian and international editions.
The acquisition helps with Dailyhunt’s growth trajectory and its ability to deliver premium content experiences to its user base, Virendra Gupta and Umang Bedi, co-founders, VerSe Innovation, said in a statement. “We will keep strengthening our capabilities and spreading our wings, leading the way in India’s digital content space,” they added.
“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, Magzter said.
Magzter has 1.1 million active paying subscribers from India and a user base exceeding 87 million since its establishment in 2011, the company said.
The company’s overall revenue grew by 57% Y-o-Y to ₹1,809 crore in FY23 from ₹1,151 crore in FY22 whereas its losses stood at ₹2,059 crore in FY23, according to an Entrackr report.
VerSe Innovation, which also operates the short video app Josh, raised $805 million in 2022 at a valuation of around $5 billion.
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Published: 18 Apr 2024, 02:11 PM IST