#FundingAlert: Koo's valuation crosses $100 million mark amid fresh investment
India's homegrown Twitter rival Koo has raised $30 million (approximately Rs. 218 crore) in a Series-B funding round led by Tiger Global. Existing investors have also participated in the round. Last week, Koo said that it has complied with the new IT intermediary rules by modifying its privacy policy, terms of use, and community guidelines suitably. Here are more details about the fresh investment.
Koo already complies with rules used to corner Twitter
Since its launch, Koo has accrued around 60 lakh users and it now qualifies as a major social media intermediary under the new IT intermediary rules. Fresh funding has been funneled into Koo at a time when rivals including Twitter are facing increased government scrutiny over alleged non-compliance with the new rules. After this Series-B investment, Koo is valued at over $100 million.
Funding led by Tiger Global saw participation from existing investors
The Series-B investment was led by New York-based investment firm Tiger Global. Koo's co-founder Aprameya Radhakrishna told The Economic Times that the round also saw participation from two new investors—IIFL's venture capital fund and South Korea-based Mirae Asset Management. The funding round also saw participation from existing investors 3one4 Capital, Accel, and Blume Ventures.
Will use funding to develop product, ensure security: Koo CEO
Radhakrishna told ET that the fresh funding gives Koo a "big boost" in terms of financial resources using which it can recruit people, invest in technology, develop the product, and ensure that its "systems are not hacked at this scale of operations." In February, Koo's 2.7 million downloads reportedly surpassed Twitter's 2.2 million downloads on Android and iOS in the same time frame.
Koo plans to become one of the world's largest platforms
The platform counts cricketer Anil Kumble, actor Ashish Vidyarthi, and Karnataka Chief Minister BS Yediyurappa among its users. Emphasizing that Tiger Global is the right partner for Koo, Radhakrishna said that it has "aggressive plans to grow into one of the world's largest social media platforms in the next few years." He added that "every Indian is cheering for us to get there soon."
