Why India's alternative to X, Koo is shutting down
What's the story
Indian social media platform, Koo, has declared its closure following unsuccessful acquisition discussions with internet media start-up Dailyhunt. Despite bagging over $60 million in funding from prominent investors like Tiger Global and Accel, Koo struggled to expand its user base and generate revenue over the past year. The founders confirmed that talks with potential partners did not yield the desired outcome.
Unsuccessful negotiations
Failed acquisition talks lead to closure
In February, TechCrunch reported that Koo was in talks with Dailyhunt, a $5 billion company, for a potential sale. However, these discussions did not result in a deal, as per the statement made by Koo founders Aprameya Radhakrishna and Mayank Bidawatka today. The founders revealed on LinkedIn that their attempts to partner with larger internet companies and media houses were unsuccessful, as most of them were reluctant to deal with user-generated content.
Business challenges
Koo's struggles with revenue generation and user expansion
Koo aimed to attract users by offering a platform where individuals could express themselves in several local languages. The start-up even expanded its app to Brazil. However, a prolonged period of limited global funding forced Koo to increase its revenue and improve its finances. This situation "got the better of us," admitted Radhakrishna and Bidawatka, indicating the financial strain that led to Koo's closure.