Koo Shutting Down: Acquisition Talks with Dailyhunt

The Morning Context reported, citing an unnamed source, that the Indian microblogging platform Koo, an alternative to X (formerly Twitter), is shutting down.

The report claimed that the four-year-old startup’s decision to wind up was triggered after acquisition talks with online media firm Dailyhunt fell through.

Launch and Growth of Koo:

Koo was launched as a homegrown alternative to X and was promoted extensively by celebrities and ministers. The company even garnered investor attention and expanded to Nigeria and Brazil.

Founded in 2020 by entrepreneurs Aprameya Radhakrishna and Mayank Bidawatka, it was the first Indian microblogging site in over ten languages. The app’s logo is a yellow bird, and it has had nearly 60 million downloads since its launch.

Financial Backing and Expansion:

In February 2021, the company raised $4.1 million in its series A round, and three months later, led by American investment firm Tiger Global, it raised another $31 million.

By June 2022, Koo had raised over $57 million and reached its peak valuation of $285.5 million. By July 2022, the app had reached a peak of more than 9 million monthly active users.

Financial Struggles and Workforce Reduction in Koo:

However, the company has been in a tight spot as it has been unable to raise additional funds and has cut its workforce to a fifth in the past four years.

The report claimed that Koo founders paid salaries out of their own pockets. The company was in talks for an acquisition by Dailyhunt.

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