Deloitte Gives Dailyhunt Parent VerSe Innovation Clean Chit on FY24 Consolidated Financials

London-based Deloitte has given a clean audit opinion to Bengaluru-based VerSe Innovation Pvt Ltd, the parent company of content platform Dailyhunt and short-video app Josh, on its consolidated financial statements for the fiscal year 2024 (FY24). Thus affirming that the financial statements present a true and fair view of the company's financial position.​

However, Deloitte did flag a few weak spots in VerSe's internal controls-particularly in supplier selection, approval of purchases, invoicing, and payment processes. These issues were found in the company's standalone financials as of March 31, 2024, but Deloitte made it clear that they didn't impact its overall opinion on the group's financial statements.

The announcement comes shortly after VerSe filed its FY24 numbers with the Ministry of Corporate Affairs. A company spokesperson confirmed Deloitte's positive assessment and said VerSe remains committed to fixing the control gaps. The company has also expressed confidence in hitting break-even in the second half of the current financial year.

The spokesperson said: "Deloitte has issued a true and fair view of our FY24 consolidated financial statements, providing a clean audit opinion on our financials. While Deloitte identified certain internal control weaknesses, their report has clearly confirmed that these findings do not impact their opinion on the consolidated financial statements, which is true and fair."

In order to address the audit concerns, the Bengaluru-based company is prepared to roll out a structured process for managing suppliers, introduce digital access control dashboards, and tighten up its revenue recognition methods.

Financially, VerSe reported ₹1,029 crore in operating revenue for FY24, slightly down from ₹1,104 crore in FY23. But the silver lining was a significant cut in losses-from ₹1,909.7 crore in FY23 to ₹889 crore in FY24. Earlier estimates had pegged revenue at ₹1,261 crore and an EBITDA loss of ₹710 crore.

Founded with the goal of leading India's digital content space, VerSe has raised over $2 billion to date. Back in April 2022, the company secured $805 million in funding from major global investors like the Canada Pension Plan Investment Board and the Ontario Teachers' Pension Plan Board.