VerSe Innovation, parent of DailyHunt and Josh, has moved to a smaller office, cutting rent by half to save Rs 7.2 crore annually. Following significant layoffs and financial losses, the company joins a wave of startups downsizing to control costs, stabilise operations, and delay IPO plans amid shifting market conditions.
Verse Innovation, the parent company of DailyHunt and Josh, is taking significant steps to reduce its operational costs, starting with a move to a smaller, more affordable office space.
The company is vacating its office, originally built to accommodate 700 employees, in favour of a new location within the same area that costs significantly less. According to estimates, the shift will save VerSe Innovation nearly Rs 60 lakh monthly, or Rs 7.2 crore annually. This move aligns with the company’s recent streamlining efforts following multiple rounds of layoffs.
Smaller Space, Bigger Savings
The rent at the outgoing facility is reported to be Rs 1.2–1.3 crore per month. In contrast, the new office space will cost only Rs 60–70 lakh monthly, cutting VerSe’s rental expenses by half. The real estate downsizing comes after the company trimmed its workforce by around 550–600 employees since November 2022, as confirmed by a VerSe Innovation spokesperson.
Cost-cutting across the Ecosystem
VerSe’s decision mirrors a broader trend among Indian startups. In recent years, companies like Byju’s, Udaan, Dunzo, and DealShare have also relinquished office space to improve cash flow and extend their financial runway. The flexible and coworking office market has emerged as a popular solution for restructuring needs, allowing companies to adapt quickly to changing workforce sizes.
Financial Pressures and Reporting Shifts
Verse Innovation’s updated FY24 financial report shows operational revenue at Rs 1,029 crore, slightly down from Rs 1,104 crore in FY23. However, net losses have narrowed considerably—from Rs 1,909.7 crore in FY23 to Rs 889 crore in FY24. While the company had previously stated an operating revenue of Rs 1,261 crore and an EBITDA loss of Rs 710 crore, the discrepancies are attributed to a change in accounting practices. FY25 financials are yet to be filed.
IPO on Hold Amid Stabilisation Efforts
Backed by global investors, including the Canada Pension Plan and Ontario Teachers’ Pension Plan, VerSe raised $805 million in 2022 at a valuation of $5 billion. Despite having raised over $2 billion, the company has postponed its IPO plans, instead choosing to stabilise operations before entering public markets.
Outlook
Verse Innovation’s strategic downsizing indicates a cautious yet deliberate approach to improving operational efficiency amid challenging market conditions. The move underscores a growing shift among startups toward flexible real estate strategies prioritising financial health over expansive office footprints.
As India’s tech ecosystem recalibrates, VerSe’s decision offers a glimpse into the evolving workspace dynamics reshaping the future of work.
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