Dailyhunt Acquires Magzter to Boost Subscription Offerings and Expand Premium Content Access

• ByStartupStory     |    April 19, 2024

Bengaluru-based VerSe Innovation, the parent company of the popular news aggregator Dailyhunt, has acquired the New York-headquartered digital newsstand Magzter. The deal, whose terms were not disclosed, significantly enhances Dailyhunt’s market position by adding 1.1 million paying subscribers and introducing a robust non-advertisement revenue stream.

Founded in 2011, Magzter is known for its vast array of over 8,500 magazines and newspapers available in 60 languages, featuring prominent titles like The Economist, Forbes, and Vogue. This acquisition marks a significant step for Dailyhunt, which currently boasts over 350 million monthly active users on its platforms. The integration of Magzter is expected to appeal particularly to a segment of users who prefer consuming content without the interruption of advertisements.

Umang Bedi, Co-founder of VerSe Innovation, explained the strategic alignment behind the acquisition: “This acquisition helps us in addressing the requirements of the premium audience who want an advertisement-free environment.” He further highlighted the synergistic potential of the deal, noting, “We felt that there is a definite synergy if we can take this basket (Magzter) and offer it to the Indian users.”

The acquisition comes after a year of collaboration between Dailyhunt and Magzter, aiming to refine a model that addresses the sophisticated content needs of discerning audiences. Bedi revealed that feedback from users who prefer ad-free content played a crucial role in pursuing the acquisition. He estimates that about 10 million of Dailyhunt’s existing user base could become potential paying subscribers through this new arrangement.

Magzter not only brings a substantial global user base of 87 million but also adds prestigious publishing partners to Dailyhunt’s repertoire. This is seen as a pivotal growth opportunity for Dailyhunt, especially in expanding its English content offerings. “One of our learnings in this whole business is that we are really serving the educated rising middle class of India, both across local languages and English,” Bedi added.

The founders of Magzter, Girish Ramdas and Vijayakumar Radhakrishnan, will join Dailyhunt, bringing their expertise and industry connections to further enhance the combined platform’s value proposition.

VerSe Innovation has demonstrated robust financial health, with a reported revenue of Rs 1,809 crore in FY23 and maintaining EBITDA positive status for the last two years. The company, which also operates the short video platform Josh, continues to focus on expanding its user base and enhancing user engagement, retention, and time spent on its platforms.

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