Way2News, a Hyderabad-based hyperlocal news startup, has raised $14 million (or around Rs 117 crore) in a Series B round funds round led by WestBridge Capital, with participation from venture capitalist Sashi Reddi.
Before this round, the startup raised $16.75 million from WestBridge Capital and Sashi Reddi in June 2022.
It plans to use the capital raised to strengthen its existing presence in key states of South India, including Andhra Pradesh, Telangana and Tamil Nadu.
Way2News also plans to expand its operations to Karnataka and Kerala. The expansion is part of its larger vision of making hyperlocal news accessible across South India.
What does Way2News do?
Founded in 2015 by Raju Vanapala, Way2News delivers short, engaging news from trusted sources in local languages (Hindi, Telugu, Tamil, Kannada, Malayalam, Marathi, Bengali and Gujarati) by leveraging its AI-powered, human-enhanced news delivery model to cater to user preferences.
The startup said it provides daily access to the most important news, bridging the information gap in rural and semi-urban areas.
“This investment is a step towards expanding our presence across every household in South India, ensuring that every citizen can access timely and relevant news in their language. We are focused on creating an inclusive, dynamic and engaging news experience for all Indians. With this funding, we aim to further expand our platform by onboarding more communities,” said Raju Vanapala, Founder and CEO, Way2News.
Subscribe to our newsletter for a daily summary of the startup ecosystem
Focused on expansion
With a presence in around 100 districts across Andhra Pradesh, Telangana and Tamil Nadu, Way2News plans to add 42 more districts across Karnataka and Kerala in the coming months.
The startup claims to have a significant monthly active user base of 15 million and aims to deepen its engagement with communities in the regions it serves.
Vanapala further stressed the importance of local news, saying, “India is a diverse country with many languages and dialects, so consumption patterns vary significantly. That is why we address things district by district.”
Apart from this, it will also focus on improving its operational scale, technology and market reach.
What did investors say about the financing?
“Over the past few years, Way2News has made remarkable strides in democratising access to local news in 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 to support their vision of becoming the go-to platform for news, and believe their unique approach will enable them to make significant inroads in the South,” said Rishit Desai, Partner, WestBridge.
Way2News Business Model
Way2News generates revenue primarily through advertising from retail chains and local businesses.
The startup posted revenue of Rs 28.99 crore in FY23, up slightly from Rs 27.36 crore in FY22. However, it posted 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 hit Rs 8 crore in monthly revenue by March 2025, up from its current Rs 6 crore.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.