Audit firm Deloitte has raised multiple red flags over Dailyhunt parent’s internal controls. This and more in today’s ETtech Top 5.
Also in the letter:
■ India’s Pak YouTube crackdown
■ Ultrahuman eyes fresh dough
■ Zepto founders’ debt play, explained
Deloitte flags lapses at Dailyhunt parent; company says tightening controls
L-R, Umang Bedi and Virendra Gupta, founders, VerSe Innovation
Deloitte has identified issues in the internal controls of VerSe Innovation – the parent company of Dailyhunt and Josh – for the financial year ending March 31, 2024, stating that these lapses could potentially lead to material misstatements across the company’s operations.
Issues raised: The audit firm said VerSe did not have appropriate internal controls over the selection and evaluation of suppliers, approval of purchase orders and invoices, and payments.
This could result in “material misstatement in the company’s trade payables and expense account balances and preferential payments to suppliers including misappropriation, it noted.
Catch up quick:
FY24 results: Net loss reduced by 54% to Rs 889 crore; Operating revenue largely flat at Rs 1,029 crore.
Way ahead: In response to the auditor’s remarks, VerSe Innovation said the company was strengthening its processes by conducting a “detailed workshop on the best practices and checklists” that will be followed by all the relevant personnel.
Go Digit General Insurance doubles net profit in Q4 FY25
Kamesh Goyal, founder, Go Digit General Insurance
Go Digit General Insurance reported a strong financial performance for the fourth quarter of FY25 (Q4 FY25), with net profit doubling to Rs 115.6 crore, compared to Rs 52.6 crore in the same period last year.
Financial highlights:
Company details: Founded in 2017, Go Digit provides a broad range of insurance products across the motor, health, travel, property, marine, and liability lines. It listed on the stock exchange on May 23, 2024.
On Monday, Go Digit’s shares closed 3.4% higher on the BSE, finishing the day at Rs 308.8.
Also Read: Go Digit General Insurance invests Rs 30 crore in Dr Reddy’s Laboratories
India blocks Pakistani YouTube channels after Pahalgam terror attack
India has banned several Pakistan-based YouTube channels following heightened tensions between the two countries after the Pahalgam terrorist attack on April 22.
The channels: The ban targeted 16 channels, including those operated by Dawn News, Samaa TV, ARY News, and Geo News. Other blocked channels include The Pakistan Experience podcast and ones owned by cricket analyst Wasay Habib and journalists Syed Muzammil and Arzoo Kazmi. Collectively, these channels boast over 63 million subscribers.
Tell me more: The Ministry of Home Affairs (MHA) recommended the ban, accusing the channels of spreading provocative, false, and misleading content, including narratives against India, its Army, and its security forces.
What else: As tensions escalated, India took further steps by holding the Indus Water Treaty “in abeyance”, closing its borders, cancelling visas for certain Pakistani nationals, and expelling diplomats.
In response, Pakistan cancelled the Simla Agreement, halted trade with India, and restricted Indian flights in its airspace.
Also Read: YouTube appoints Gunjan Soni as new India managing director
Ultrahuman in talks with WestBridge to raise $100-120 million after SoftBank deal falls through
Mohit Kumar, CEO, Ultrahuman
Ultrahuman is in advanced discussions with WestBridge Capital to secure a fresh investment of $100–120 million.
Deal details: If finalised, the funding round could value the Bengaluru-based wearables startup at approximately $500–550 million. The company plans to deploy the capital towards international expansion initiatives.
Previous attempt: Ultrahuman had previously explored a $35–40 million funding round with SoftBank, which ultimately fell through due to disagreements over the round size and company valuation.
“At the time of the SoftBank discussions, which was more than seven to eight months ago, the company’s scale was different. SoftBank proposed a smaller round at a lower valuation, which Ultrahuman disagreed with,” said a source familiar with the negotiations.
Performance and outlook: In its January report, Ultrahuman posted sixfold year-on-year revenue growth in 2024, with an average profit before tax (PBT) margin of 11%. It expects PBT margins to rise to 20% as it expands its product range, launches new trials and expansion centres, and scales up its Texas UltraFactory.
ETtech Explainer: Why Zepto founders are taking personal debt to boost Indian ownership
Aadit Palicha and Kaivalya Vohra, founders, Zepto
Zepto cofounders Aadit Palicha and Kaivalya Vohra plan to raise Rs 1,500 crore in personal debt to acquire shares from foreign shareholders as the quick commerce player gears up for an Indian stock market listing.
But why: The company aims to comply with India's FDI norms before the IPO. While India permits 100% FDI in online marketplaces, online inventory sales are restricted to companies with majority Indian ownership. To qualify as an Indian-Owned and Controlled Company (IOCC), a firm must have at least 50% Indian ownership.
Structuring debt Palicha and Vohra are adopting a rare approach for high cash-burn startups — pledging their founder shares.
Broader strategy: Zepto is also close to finalising a $250-million secondary sale led by private equity firms. Combined with the founders’ planned stake purchase, these moves are expected to boost Indian ownership in Zepto by 8–10%.
Also Read: Zomato and Blinkit parent Eternal's board clears plan to cap foreign ownership at 49.5%
Also in the letter:
■ India’s Pak YouTube crackdown
■ Ultrahuman eyes fresh dough
■ Zepto founders’ debt play, explained
Deloitte flags lapses at Dailyhunt parent; company says tightening controls
Deloitte has identified issues in the internal controls of VerSe Innovation – the parent company of Dailyhunt and Josh – for the financial year ending March 31, 2024, stating that these lapses could potentially lead to material misstatements across the company’s operations.
Issues raised: The audit firm said VerSe did not have appropriate internal controls over the selection and evaluation of suppliers, approval of purchase orders and invoices, and payments.
This could result in “material misstatement in the company’s trade payables and expense account balances and preferential payments to suppliers including misappropriation, it noted.
Catch up quick:
- Deloitte highlighted inadequate controls over supplier selection, purchase approvals, and payments.
- It flagged a Rs 35-crore claim related to unexplained supplier invoices.
- CFO Sandip Basu has reportedly resigned on account of health issues.
FY24 results: Net loss reduced by 54% to Rs 889 crore; Operating revenue largely flat at Rs 1,029 crore.
Way ahead: In response to the auditor’s remarks, VerSe Innovation said the company was strengthening its processes by conducting a “detailed workshop on the best practices and checklists” that will be followed by all the relevant personnel.
Go Digit General Insurance doubles net profit in Q4 FY25
Kamesh Goyal, founder, Go Digit General Insurance Go Digit General Insurance reported a strong financial performance for the fourth quarter of FY25 (Q4 FY25), with net profit doubling to Rs 115.6 crore, compared to Rs 52.6 crore in the same period last year.
Financial highlights:
- Gross written premium: Rose to Rs 2,576 crore, up from Rs 2,335 crore in FY24.
- Total expenses: Increased to Rs 2,426 crore from Rs 2,198 crore in Q4 FY24.
- Total income: Grew to Rs 2,855.1 crore from Rs 2,692.5 crore in Q4 FY24.
- Solvency ratio: Improved to 2.24 from 1.61 year-on-year.
Company details: Founded in 2017, Go Digit provides a broad range of insurance products across the motor, health, travel, property, marine, and liability lines. It listed on the stock exchange on May 23, 2024.
On Monday, Go Digit’s shares closed 3.4% higher on the BSE, finishing the day at Rs 308.8.
Also Read: Go Digit General Insurance invests Rs 30 crore in Dr Reddy’s Laboratories
India blocks Pakistani YouTube channels after Pahalgam terror attack
India has banned several Pakistan-based YouTube channels following heightened tensions between the two countries after the Pahalgam terrorist attack on April 22.
The channels: The ban targeted 16 channels, including those operated by Dawn News, Samaa TV, ARY News, and Geo News. Other blocked channels include The Pakistan Experience podcast and ones owned by cricket analyst Wasay Habib and journalists Syed Muzammil and Arzoo Kazmi. Collectively, these channels boast over 63 million subscribers.
Tell me more: The Ministry of Home Affairs (MHA) recommended the ban, accusing the channels of spreading provocative, false, and misleading content, including narratives against India, its Army, and its security forces.
What else: As tensions escalated, India took further steps by holding the Indus Water Treaty “in abeyance”, closing its borders, cancelling visas for certain Pakistani nationals, and expelling diplomats.
In response, Pakistan cancelled the Simla Agreement, halted trade with India, and restricted Indian flights in its airspace.
Also Read: YouTube appoints Gunjan Soni as new India managing director
Ultrahuman in talks with WestBridge to raise $100-120 million after SoftBank deal falls through
Ultrahuman is in advanced discussions with WestBridge Capital to secure a fresh investment of $100–120 million.
Deal details: If finalised, the funding round could value the Bengaluru-based wearables startup at approximately $500–550 million. The company plans to deploy the capital towards international expansion initiatives.
Previous attempt: Ultrahuman had previously explored a $35–40 million funding round with SoftBank, which ultimately fell through due to disagreements over the round size and company valuation.
“At the time of the SoftBank discussions, which was more than seven to eight months ago, the company’s scale was different. SoftBank proposed a smaller round at a lower valuation, which Ultrahuman disagreed with,” said a source familiar with the negotiations.
Performance and outlook: In its January report, Ultrahuman posted sixfold year-on-year revenue growth in 2024, with an average profit before tax (PBT) margin of 11%. It expects PBT margins to rise to 20% as it expands its product range, launches new trials and expansion centres, and scales up its Texas UltraFactory.
ETtech Explainer: Why Zepto founders are taking personal debt to boost Indian ownership
Zepto cofounders Aadit Palicha and Kaivalya Vohra plan to raise Rs 1,500 crore in personal debt to acquire shares from foreign shareholders as the quick commerce player gears up for an Indian stock market listing.
But why: The company aims to comply with India's FDI norms before the IPO. While India permits 100% FDI in online marketplaces, online inventory sales are restricted to companies with majority Indian ownership. To qualify as an Indian-Owned and Controlled Company (IOCC), a firm must have at least 50% Indian ownership.
Structuring debt Palicha and Vohra are adopting a rare approach for high cash-burn startups — pledging their founder shares.
- Byju's, which pursued a similar strategy, defaulted and now faces insolvency proceedings.
- Pharmeasy, another startup with pledged founder shares, saw its valuation slashed by over 90%.
Broader strategy: Zepto is also close to finalising a $250-million secondary sale led by private equity firms. Combined with the founders’ planned stake purchase, these moves are expected to boost Indian ownership in Zepto by 8–10%.
Also Read: Zomato and Blinkit parent Eternal's board clears plan to cap foreign ownership at 49.5%
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