In a significant development, Hyderabad-based hyperlocal news startup Way2News has secured a $14 million Series B funding round led by WestBridge Capital, with participation from venture capitalist Sashi Reddi. This investment marks a crucial milestone for the company as it aims to expand its footprint across South India, ensuring that every citizen has access to timely and relevant news in their local language.
Founded in 2015 by Raju Vanapala, Way2News has emerged as a trailblazer in the hyperlocal news space, leveraging its AI-powered, human-enhanced news delivery model to cater to the diverse language preferences of South Indian audiences. With a presence in over 100 districts across Andhra Pradesh, Telangana, and Tamil Nadu, the startup plans to add 42 more districts in Karnataka and Kerala in the coming months, solidifying its position as the go-to platform for hyperlocal news in the region.
Democratizing Access to Local News
Way2News' unique approach to news delivery has struck a chord with its rapidly growing user base. The platform offers short, engaging news stories from trusted sources in eight Indian languages - Hindi, Telugu, Tamil, Kannada, Malayalam, Marathi, Bengali, and Gujarati. This focus on vernacular content has enabled Way2News to effectively bridge the information gap in rural and semi-urban areas, where traditional media often falls short.
"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," said Vanapala, emphasizing the importance of hyperlocal news in catering to the specific needs and interests of local communities.
Leveraging AI for Reliability and Authenticity
One of Way2News' key differentiators is its commitment to delivering reliable and authentic news content. The platform leverages advanced AI algorithms to verify the quality and authenticity of user-generated content, ensuring that readers can trust the information they receive.
"Other media probably may not be that reliable compared to us. We have solved the reliability challenge using our technology and our experience in the language of the market," said Vanapala. "Digital as a medium does not enjoy the trust that print and traditional media generally enjoys. We have brought that reliability to our content, even if it is contributed by the citizens from various parts of a state."
This focus on reliability has paid off, with Way2News claiming over 30 million downloads and a substantial monthly active user base of 15 million. The platform's active users are growing by 15-20% monthly, a metric the company is actively investing in to drive further growth.
Empowering Local Businesses through Targeted Advertising
Way2News' hyperlocal approach extends beyond news delivery to its advertising model as well. The platform offers geo-targeting capabilities at the mandal (sub-district) level, enabling local businesses to reach their target audience effectively. This micro-targeting option is particularly beneficial for small businesses looking to engage with their local communities.
"Imagine if your business is a very small business, it covers only a particular village, you can probably advertise your brand only to that village on Way2News. And if your business can impact people in that mandal, you can target only that mandal," explained Vanapala.
This targeted advertising model, combined with Way2News' high user engagement rates, has resulted in a strong retention rate among advertisers. The platform runs one ad impression for every 10 news items, with users flipping through an average of 100 news items per day, resulting in a claimed click-through rate (CTR) of 1.5-3%.
Focusing on South India, Expanding to New Markets
While Way2News started its journey in the Telugu market, it has since expanded to Tamil Nadu, which is now its largest market in terms of population and media spends in the South. With this latest funding round, the company plans to deepen its presence in the Tamil market while also expanding into Karnataka and Kerala.
"For us every language is a vertical. Rather than focusing on all eight languages at a time, we thought of going deep into every language. It is important for us to build a dense audience in every location," said Vanapala.
The company's focus on South India is driven by the region's large population and untapped potential for hyperlocal news. With this funding, Way2News aims to solidify its position as the go-to platform for hyperlocal news in the region, bringing more communities into the fold and ensuring that every citizen has access to timely and relevant news in their language.
The Road Ahead: Scaling Operations and Enhancing Technology
The $14 million Series B funding will be instrumental in helping Way2News scale its operations, enhance its technology, and strengthen its market reach. The company plans to use the funds to expand its presence in Karnataka and Kerala, while also deepening its engagement with communities in its existing markets of Andhra Pradesh, Telangana, and Tamil Nadu.
"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 Vanapala.
As Way2News continues to grow, it will be interesting to see how the company leverages its AI capabilities to further enhance the reliability and authenticity of its news content. The platform's ability to effectively cater to the diverse language preferences of South Indian audiences while empowering local businesses through targeted advertising will be key to its long-term success.
With its innovative approach to hyperlocal news delivery and a strong focus on reliability and authenticity, Way2News is poised to revolutionize the news landscape in South India. As the company embarks on its next phase of growth, it will undoubtedly serve as an inspiration for other startups looking to make a meaningful impact in the hyperlocal space.
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