A news app that goes hyperlocal

Young Indians in the age group of 24-32 years are known to consume the highest amount of internet. The availability of affordable smartphones and data connectivity is an added impetus for internet users in rural India.

Cashing on digital India, Raju Vanapala launched Way2News in January 2016. The mobile news application is a subsidiary of Hyderabad-based Way2Online Interactive Private Limited.

The hyperlocal short news platform is a pivot from Way2SMS, a messaging service. The introduction of cross-platform messaging brought a change in communication landscape.

This led Vanapala to make use of Way2SMS user base and pivot the business model into the next best option, an information portal.

Way2News is available in eight Indian languages such as Telugu, Hindi, Tamil, Kannada, Marathi, Bengali, Gujarati and Malayalam.

In three years, the personalised news app has more than two million daily active users, four million monthly active users, 20 million downloads, 4.5 billion screen use per month, and 100 stories consumed on a daily basis.

"People in rural India are curious to know about events taking place near them. These news given by media houses are catered in very small percentage.

Besides, through Way2SMS we had data base that was deep rooted till mandal level in villages. Also, we have exclusive news that is contributed by a network of citizen reporters or stringers. This combination has worked well for us and we intend to grow in the same segment," Raju Vanapala told The Hans India.

According to the founder, their news app in Telugu, Tamil and Bengali has higher traction among readers from these States.

However, the app was first rolled out in English. But six months back, the service has been clipped. "We started our news journey in English.

But, soon we realised that the consumption pattern of news among these readers is different. Besides, players already exist in this segment.

Coming to vernacular space, other news providers are recycling stories they get every day. Whereas, Way2News is successful due to its unique content," Vanapala adds.

Vanapala claims, Way2News has an extensive network of citizen journalists contributing 12,000 stories every day and 20,000 citizen reporters actively contributing every month. Few of these reporters are stringers writing for other publications.

The startup has an editorial team working on content, along with partnership with few publications and news wire agencies. Depending upon the format and quality of content, a reporter is paid Rs 20 – Rs 100.

"Way2News covers news from almost half of the districts in the country. News in Telugu and Tamil languages have 80 per cent mandal level coverage. We have an editorial team of more than 100 people contributing half of the content and processing it after a fact check.

Also, we have an Artificial Intelligence powered mechanism in place to verify the content given by citizen reporters," Vanapala says.

The feedback received by the platform from users, supports AI to verify the quality of news. Based on the quality of the content, a citizen reporter is given a score. If a user reports against a content, the platform will take down the news and will investigate further.

This impacts the score of the writer, and next when the same writer submits a content, the platform through AI, will screen it before uploading.

Vanapala sees advancement in filter of fake content with AI in place. "We are looking at an advanced process of providing accurate news, that's a work in progress, for the next 18 months.

Other elements we are expecting for AI to scan through news is, such as the motive behind the news submitted, etc. AI has the capability to analyse through the data stored in our content bank," he explains.

Way2News also provides news in video format. The content in text is converted into video through Artificial Intelligence, says Vanapala, adding that, very soon, news in audio form will be available.

"Some users cannot read in their native language, to address this, video and audio news format has been introduced. Video content is already gaining high traction. Audio content will be rolled out soon.

Down the line, Way2News will be a combination of news in three forms -- text, video and audio."

The startup has its space in Hyderabad, Mumbai, and Delhi, while the news division is independent in this city, the space is shared in the other two States.

Way2News has a strength of 150 employees, while the group has 500 people.

From 20 lakh DAUs (daily active users), the founder aims to reach 50 lakh DAUs in next 18 months. Post the target, Vanapala informed, an investment plan to raise $25 million (approx. Rs 1.76 billion) is in pipeline.

"Way2News has grown its user base organically. However, after achieving our goal for the next 18 months, the plan is to reach 5 crore users.

To achieve this growth, we will have to look at alternative and paid methods. To complement the growth, we will add another 100 people, and open independent offices at Mumbai and Delhi," he added.

Speaking about the revenue model, Vanapala explains, Way2News started earning revenue from the last two months, by placing advertisements on the app.

At present, they have partnered with over 30 brands that are levied a fee based on, cost per thousand impression. Till date, the startup has been self-funded up to $5 million.

Currently, the revenue run rate per month is Rs 1 crore, and quarter-on-quarter growth, in terms of volume of users and value, is at 30 per cent, Vanapala says.