VerSe Innovation acquires Magzter to expand digital content portfolio

VerSe Innovation, the parent company of popular news aggregator Dailyhunt and short-video platform Josh, has acquired New York-based digital magazine store Magzter.

Interestingly, This is Dailyhunt's first global acquisition and marks its strategic foray into super-premium content, expanding beyond its traditional ad-driven revenue model.

Established in 2011, Magzter offers a substantial library of over 8,500 premium magazines and newspapers, and the financial details of the deal were not disclosed.

Details of the acquisition

The acquisition by VerSe is a cash-and-stock transaction aimed at diversifying and enriching Dailyhunt's content offerings.

As explained by Umang Bedi, co-founder of VerSe Innovation, Magzter will continue to operate as a subsidiary, with its founders remaining in charge. This strategic move is compared to the synergy seen in past tech mergers, such as Facebook and Instagram.

Additionally, Magzter’s significant reach, with over 1.1 million active paying subscribers from India and a global user base exceeding 87 million, is expected to bolster Dailyhunt's user engagement.

Launch of Dailyhunt Premium

Following the acquisition, VerSe introduced Dailyhunt Premium, a subscription-based service within the Dailyhunt app. This new feature will allow users to access ad-free premium content in over 60 languages from international publishers, enhancing the user experience.

Publications available through this service include high-profile names like Time, The Economist, and Vogue, addressing the demands of a discerning and affluent audience segment in India.

Revenue model transformation

The acquisition signifies a pivotal shift in Dailyhunt's revenue strategy from solely advertising to a blend of subscriptions and ads.

Dailyhunt, which serves over 350 million monthly active users, sees this as an opportunity to tap into the affluent English-speaking audience in India, which exhibits content consumption patterns similar to those in Western countries. The transition also aligns with changing consumer preferences where users are increasingly willing to pay for premium, ad-free experiences.

Leveraging the existing user base

With the integration of Magzter's offerings, Dailyhunt plans to leverage its existing user base and introduce high-quality content to a broader audience, potentially enhancing monetization through subscriptions.

The company plans to extend Dailyhunt Premium's reach beyond India to other significant markets, such as the MENA region, aiming at global audience engagement.