Hyperlocal news startup Way2News raises $14 million to bolster presence in South India

Hyderabad-based hyperlocal news startup Way2News has raised $14 million (or about Rs 117 crore) in a Series B funding round led by WestBridge Capital, with participation from venture capitalist Sashi Reddi.

Prior to this round, the startup raised $16.75 million from WestBridge Capital and Sashi Reddi in June 2022.

It plans to use the raised capital to strengthen its existing presence in key South Indian states, including Andhra Pradesh, Telangana, and Tamil Nadu. 

Way2News also plans to expand operations into Karnataka and Kerala. The expansion is part of the its broader vision to make hyperlocal news accessible across South India.

What does Way2News do?

Founded in 2015 by Raju Vanapala, Way2News offers short and engaging news stories from trusted sources in local languages—Hindi, Telugu, Tamil, Kannada, Malayalam, Marathi, Bengali, and Gujarati—leveraging its AI-powered, human-enhanced news delivery model to cater to user preferences. 

The startup said that it gives daily access to the news that matters most, bridging the information gap in rural and semi-urban areas.

"This investment is a step towards expanding our footprint into every household in South India, ensuring that all citizens can access timely and relevant news in their language. We focus on building an inclusive, dynamic, and engaging news experience for every Indian. With this funding, we aim to scale our platform further, bringing more communities into the fold," said Raju Vanapala, Founder and CEO of Way2News.

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Focused on expansion

With a presence in about 100 districts in Andhra Pradesh, Telangana, and Tamil Nadu, Way2News plans to add 42 more districts in Karnataka and Kerala in the coming months.

The startup claims to have a substantial monthly active user base of 15 million and is aiming to deepen its engagement with communities in the regions it serves.

Vanapala further emphasized the importance of local news, stating, “India is a diverse country with many languages and dialects, so consumption patterns vary significantly. That is why we approach things on a district-by-district basis."

Apart from this, It will also focus on enhancing its operational scale, technology, and market reach.

What did investors say about the funding?

"Over the last few years, Way2News has made remarkable strides in democratising access to local news across South India, effectively addressing a crucial gap in the market. Their rapid growth in the Telugu and Tamil markets is a testament to their vision and the strength of their model. We look forward to continuing our support for their vision to become the go-to platform for news, and we believe their unique approach will enable them to make significant inroads down south," said Rishit Desai, Partner at WestBridge.

Way2News business model

Way2News primarily generates revenue through advertising from local retail chains and businesses.

The startup posted revenue of Rs 28.99 crore in FY23, a slight increase from Rs 27.36 crore in FY22. However, it recorded a loss of Rs 15.43 crore in FY23, following a profit of Rs 4.79 crore in FY22.

The Hyderabad-based startup now expects to reach Rs 8 crore in monthly revenue by March 2025, up from its current Rs 6 crore.