It was a cash-and-stock transaction, VerSe cofounder Umang Bedi told ET, but did not say how much it paid.
According to Bedi, this acquisition of the Bengaluru-based company is set to drive significant growth for VerSe Innovation, with expectations of generating an additional $100 million in revenue and achieving a 10% earnings before interest, taxes, depreciation and amortisation (Ebitda) margin in FY25.
“The aim is to create an India-centric, largest ad retargeting and exchange platform. We’ve seen significant success on the Valueleaf side, where by June 30, we had already reached a Rs 732 crore ARR (annual recurring revenue) with nearly 10% Ebitda,” said Bedi.
VerSe has acquired several companies, including New York-based digital magazine store Magzter, to enhance its portfolio with premium English language content. The addition of Valueleaf strengthens VerSe’s portfolio, ensuring a complete ad stack solution and enhances value for all stakeholders, Bedi said.
“The first thing that Valueleaf brings to the table is 15 years of performance data. Second, they’ve mastered the journey of building supply-side integrations with over 50,000 websites, 1,000 apps, and all smartphones. Third, they’ve developed vertical-specific solutions like Buddy Loan for FSI, Whistle Feed for SMBs, and Share and Earn, which is a growth hack for digitally native companies to serve as lead engines in performance marketing for those respective verticals,” he added.
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VerSe was founded by former Facebook India managing director Bedi and Virendra Gupta. It last raised $805 million in a funding round led by existing investor Canada Pension Plan Investment Board in 2022. New investors like Ontario Teachers’ Pension Fund, Luxor Capital and Sumeru Ventures, and its existing backers such as Sofina Group and Baillie Gifford also participated in this round.So far, the company has raised over $1.4 billion and has returned about $450 million in secondary exits to early investors, Bedi said.
“By integrating our innovative data-driven strategies and technologies with VerSe Innovation’s robust platforms, we are poised to elevate our impact and drive superior outcomes for brands,” said Satish Saraf and Srikanth Bureddy, cofounders of Valueleaf Group.