VerSe Innovations, a prominent media technology unicorn based in India, has recently broadened its scope in the digital marketing sector with the acquisition of Valueleaf Group, a major player in the Indian digital advertising landscape. This strategic move places VerSe in direct competition with global giants such as Google and InMobi.
Valueleaf Group, which claims to reach up to 500 million mobile devices, was acquired by market research firm CapitalVia in 2013. Since then, little information has been disclosed about its ownership. VerSe’s co-founder, Umang Bedi, remained reticent about the specifics of the acquisition, stating that “Valueleaf had never raised external capital” and describing the transaction as a cash and shares deal without revealing the exact valuation.
VerSe is backed by an impressive roster of investors including CPP Investments, Ontario Teachers’ Pension Plan, Qatar Investment Authority, and Goldman Sachs, and was valued at approximately $5 billion in 2022. Both VerSe and Valueleaf are headquartered in Bengaluru, which is often considered the tech hub of India.
This acquisition is significant as it underscores VerSe’s commitment to expanding its foothold in the burgeoning digital advertising market in India, where digital ad spend is predicted to surpass traditional advertising by capturing a 60% share by 2028. The growth in this sector is driven by an increase in online consumption and the widespread adoption of smartphones and internet services across the country.
According to Bedi, Valueleaf excels in four core verticals: gaming, online commerce, banking and financial services, and digital-native brands. These sectors are pivotal as they represent approximately 80% of all performance marketing expenditures. “What we found with Valueleaf is that they were very strong in four core verticals: gaming, online commerce, banking and financial services, and digital-native brands, which are largely the four verticals that spend 80% of all their ad dollars on performance marketing,” Bedi elaborated.
For small business owners and solopreneurs, this acquisition could signal enhanced opportunities for more targeted advertising solutions and greater reach within the Indian market and beyond. Valueleaf’s capabilities include targeting ads to over 90% of Indian internet users and conversion data insights from millions of online shoppers, making it a potentially invaluable partner for businesses aiming to increase their digital presence.
Before acquiring Valueleaf, VerSe had developed an in-house ad tech stack aimed at optimizing ad placements across its own platforms, such as Dailyhunt and Josh. The integration of Valueleaf is expected to significantly enhance VerSe’s advertising capabilities, expanding them to include a vast network of over 50,000 websites and 1,000-plus apps.
In the financial year 2023, Valueleaf generated approximately $36 million in revenue, and Bedi anticipates a notable uptick in both revenue and EBITDA for the current year. This acquisition, which follows closely after the purchase of digital newsstand platform Magzter, underscores VerSe’s aggressive expansion strategy and its vision to dominate the digital advertising space in India.
