VerSe Innovation, the parent company of Dailyhunt and Josh, has experienced significant changes in its finance department. The group CFO, along with other key finance personnel like Rajiv Sikaria and Piyush Agarwal, have recently resigned. While the CFO's departure was attributed to health reasons, the other exits raise questions about the company's financial situation.
These departures are occurring at a critical time for VerSe, as the company is actively pursuing acquisitions, facing delays in financial audits, and preparing for an initial public offering (IPO). This raises concerns among observers and analysts.
VerSe has been on an aggressive acquisition spree, recently acquiring Magzter and Valueleaf Group. The company plans to fund these acquisitions through a combination of cash and stock, aiming for significant revenue growth in the coming fiscal year. They also plan to improve profitability through cost-cutting measures and AI-powered innovations.
VerSe's FY24 revenue declined compared to the previous year, although its Ebitda burn decreased. The company forecasts significant revenue growth in FY25 and aims to achieve profitability in FY26. The delayed filing of audited accounts and the senior-level departures raise questions about the company's readiness for its planned IPO.
Experts point out that the timing and nature of these exits, especially for senior finance officers, could signify underlying issues, potentially related to accounting or financial practices. The resignation could suggest disagreements with the management regarding financial matters.