Indian Social Network Koo Shuts Down as Buyout Talks Collapse
Despite substantial funding and initial success, Koo fails to secure a sustainable future amid challenging market conditions.
15 July 2024
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Savleen Kaur
Koo's negotiations with Dailyhunt for a potential buyout did not result in a deal, leading to the decision to shut down.
Despite raising over $60 million from prominent investors, Koo struggled to grow its user base and generate revenue.
Koo aimed to capitalize on local language support and regulatory compliance but ultimately could not compete with established global platforms.
The Indian social media platform Koo, known as a competitor to Elon Musk’s X, is ceasing operations after its acquisition talks with Dailyhunt fell through. This marks the end of Koo's struggle to find a sustainable business model.
Despite raising over $60 million from investors like Accel and Tiger Global, Koo faced major hurdles in growing its user base and generating revenue over the last two years. These financial difficulties ultimately led to its decision to shut down.
In February, TechCrunch reported that Koo was in discussions with Dailyhunt, a $5 billion internet media startup, for a possible buyout. However, these talks did not result in a deal, as confirmed by Koo's founders Aprameya Radhakrishna and Mayank Bidawatka. "We sought partnerships with several large internet companies, conglomerates, and media houses, but these negotiations did not produce the results we hoped for," the founders wrote on LinkedIn. "Most were hesitant to engage with user-generated content and the unpredictable nature of a social media platform."
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Koo aimed to capture the Indian market by offering an alternative to X that supported multiple local languages. The platform initially gained traction during a period of conflict between Twitter and the Indian government, with Twitter resisting government demands for content removal. During this time, Twitter co-founder Jack Dorsey claimed the Indian government threatened to shut down the social network and raid employees' homes. The government denied these claims, with a top minister accusing Dorsey of trying to obscure a contentious period in Twitter’s history.
Koo used this opportunity to present itself as a compliant alternative, promising to follow local regulations. This attracted many high-profile Indian politicians to the platform, though few from the opposition party. Koo also expanded its app to Brazil. However, the prolonged funding challenges that forced startups worldwide to improve their finances ultimately overwhelmed Koo, according to its founders.
For years, Indian entrepreneurs and investors have been trying to create local alternatives to global platforms like Facebook, Instagram, Twitter, WhatsApp, and YouTube. However, it is becoming increasingly clear that these established American companies are better equipped to meet the needs of the diverse Indian market.
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