In 2022, investors valued VerSe Innovation, the company behind Dailyhunt and Josh, at $5 billion. Baillie Gifford now values its stake at a level implying just $576 million for the company. That's an almost 90% fall. It looks like a verdict on India's next billion internet users. But the users weren't the problem. The money was.
India had 958 million active internet users in 2025, including 548 million in rural areas. Cheap data had done its job. Investors assumed that millions watching regional-language videos would eventually attract billions in advertising. They overlooked a basic question: how much could each viewer actually earn for the platform?
Take an app with 100 million monthly users earning ₹5 per user each month. That's ₹600 crore annually, before paying for technology, video delivery, creators and staff. More users don't help much if every additional viewer costs more than they bring in.
The 2020 TikTok ban made this easy to ignore. Josh and Moj raced to fill the gap, backed by investors betting on an Indian short-video giant. But TikTok's exit didn't remove YouTube or Instagram. Google and Meta already had advertisers, creators and better tools to sell ads. Indian rivals got an opening, not a monopoly.
VerSe's numbers show the strain. Revenue rose to ₹1,930 crore in FY25, but excluding acquisitions it was ₹1,373 crore. In FY26, revenue fell nearly 40% to ₹1,162 crore, with a ₹699 crore net loss. Gaming restrictions and a lost livestreaming partnership hurt. Yet India's overall digital advertising market grew 26% to ₹94,700 crore in 2025. Advertisers were still spending. Much of that money went where they could track sales more easily, including search, social media and shopping platforms.
There are important exceptions to the gloom. Pratilipi's revenue more than doubled to ₹188 crore in FY26. Regional OTT platform Stage reached about $16 million, helped by paying subscribers. ShareChat cut its adjusted operating losses sharply even without much revenue growth. None proves that local-language entertainment is an easy business. They suggest people may pay for compelling content, while advertising alone is a harder bet.
VerSe's markdown doesn't mean Bharat failed to come online. It means investors paid too much for the assumption that attention would automatically turn into revenue. The next winners will have to prove how they make money, not merely how many people watch.
Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.
“Kuch Toh Gadbad Hai Daya”: Walmart Probes Alleged Kickbacks At Flipkart
Walmart has opened an investigation after whistleblower complaints alleged that Flipkart employees received more than Rs 150 crore in kickbacks from vendors.
The claims involve staff in the smartphones and luggage and travel-accessories divisions.
Read more here
“Kursi Ki Peti Bandh Lo”: Atomberg Gets SEBI Nod For IPO
Consumer-appliances maker Atomberg Technologies has received SEBI approval for an IPO comprising a fresh issue of up to Rs 450 crore and an offer for sale of 7.65 crore shares.
Atomberg plans to deploy Rs 90 crore towards debt repayment, Rs 150 crore for brand and performance marketing, and Rs 100 crore for research and development.
Read more here
“Sabka Bhala Ho”: Centre Sets Up Social Security Board For Gig Workers
The Centre has notified the National Social Security Board for unorganised, gig and platform workers under the Code on Social Security.
The board will recommend, monitor and review welfare schemes, records and related expenditure for these workers.
Read more here
“Soch Badlo Kapde Nahi”: MeitY Unveils DEPA Framework For AI Training Data
MeitY has released a Data Empowerment and Protection Architecture handbook for AI training. The techno-legal framework lets institutions collaborate on data while retaining control through contractual permissions, controlled computing environments and privacy-enhancing safeguards.
Read more here
“Kaayde Mein Raho”: RBI Tightens Cyber Checks On Lenders
The RBI has sought evidence of banks' compliance with existing cybersecurity rules and details of their preparedness for AI-related risks.
It has also asked lenders to examine weaknesses in APIs connecting banks with fintechs and non-bank lenders.
Read more here
“Abhi Toh Aur Badhega”: Hero Targets 80,000 Monthly EV Capacity By Q2 FY28
Hero MotoCorp plans to raise monthly Vida electric two-wheeler capacity from 30,000 units now to 45,000 by March-end and more than 80,000 by Q2 FY28.
Capacity stood at 15,000 units at FY26-end.
Read more here
“Purana Saal Naya Maal”: TVS Capital Enters Private Credit With Rs 750 Cr Fund
TVS Capital Funds has launched TVS Alts, targeting Rs 750 crore for its first private-credit fund with a Rs 500 crore green-shoe option.
It plans secured loans of Rs 40-100 crore for performing companies and is targeting returns of about 17%.
Read more here
“Dosti Ko Rishtedari Mein Badal De”: one8 Merges With Agilitas Sports
Virat Kohli's stake in Agilitas Sports has risen to 6.4% from 1.8% following the NCLT-approved merger of one8 Sports with Agilitas.
The merger gives one8 access to Agilitas' product development, design, research, manufacturing and retail capabilities.
Read more here
“Humari Bhi Haan Hai”: CCI Clears Prosus's Investment In Navi
The Competition Commission of India has approved MIH Payments Holdings' proposed acquisition of a stake in Sachin Bansal-led Navi.
The clearance follows Navi's $100 million fundraise from Prosus announced in August.
Read more here
“Kuch Naya Ho Jaaye”: QNu Labs And Netpoleon Bring QShield 2.0 To Enterprises
Netpoleon India has partnered with deeptech company QNu Labs to take quantum-safe cybersecurity products to Indian enterprises.
The centrepiece is QShield 2.0, a platform covering cryptographic-risk profiling, operations, governance and AI-driven security.
Read more here
“Zor Laga Ke Haisha”: EKA Mobility Opens Six Manufacturing Facilities
EKA Mobility has inaugurated six facilities across Pune and Pithampur to scale electric buses, trucks and smaller commercial vehicles.
The company says the network has annual capacity for more than 40,000 electric vehicles and represents investment exceeding Rs 3,500 crore.
Read more here
“Main Sambhaal Loonga”: Allyson Jenkins To Lead Pixxel Federal
Pixxel has appointed Allyson Jenkins as CEO of Pixxel Federal, its new US subsidiary serving civilian, defence and intelligence agencies.
Jenkins previously led the Bengaluru spacetech company's public-sector business.
Read more here
“Desh Ke Liye Kurbaani”: IIT Kanpur To Build Rs 104.28 Cr UP Cyber Centre
IIT Kanpur's C3iHub will establish and operate the Uttar Pradesh Cyber Security Operations Centre for three years under a Rs 104.28 crore project approved by the state Cabinet.
It will monitor government IT and operational-technology systems around the clock.
Read more here
CapGrid has raised Rs 50 crore in a pre-Series B round led by Hero Enterprise Venture Partners, with participation from Axilor Ventures, Anicut Capital, Nexus Venture Partners and angels.
Read more here
Manastu Space has raised Rs 22 crore in an apparent Series A extension from Gandhi Securities and Investments, the Thacker Legacy Trusts and angel investors.
Read more here
Qiroko has raised Rs 1.5 crore in a pre-seed round led by ISV Capital, with angel participation.
Read more here
