Koo, Once Touted as India's Twitter Alternative, Shuts Down After Sale Talks Fail

Koo: The Tiger Global and Accel-backed social media platform had approached multiple media houses and internet companies for a sale

Cash-strapped social media platform Koo, once promoted as a homegrown rival to global tech giant X (formerly Twitter), has shut down after talks with multiple buyers over the past few months failed to materialize.

Join Our WhatsApp Channel

Koo’s Establishment and Initial Success

Founded in 2020 by Aprameya Radhakrishnan and Mayank Bidawatka, Koo was considered a local alternative to Twitter for Indian users. Sporting a yellow bird as its logo, the platform quickly gained attention from prominent politicians and celebrities. Union Commerce Minister Piyush Goyal and former Communications Minister Ravi Shankar Prasad were among the key supporters, driving user numbers to a peak of 4.5 million in January 2021.

Investment and Valuation

Koo attracted significant interest from investors as well. Leading investment firms like Tiger Global and Accel invested over $60 million in the platform. According to Tracxn, the company was valued at $274 million in 2022. This investment played a crucial role in advancing the company’s ambitions.

Read this in Hindi: Koo Shuts Down: कभी भारत के ट्विटर विकल्प के रूप में चर्चित, अब बंद हुआ, जाने पूरा मामला

Economic Challenges and Monetization Issues

However, Koo’s success story soon encountered challenges. The platform struggled to monetize, leading to a severe cash crunch amid tough macroeconomic conditions. Consequently, in April 2022, Koo laid off one-third of its 260-member workforce to conserve cash.

Sale Talks and Failure

Koo approached several media houses and internet companies for a potential sale, but these talks did not yield the desired outcome. Co-founder Mayank Bidawatka mentioned in a LinkedIn post, “Most of these companies did not want to deal with user-generated content and the ‘wild nature of a social media company’.”

Join Our WhatsApp Channel

Koo’s Closure

Bidawatka further added, “While we would have liked to keep the app running, the cost of technology services to keep a social media app running is high, and we’ve had to take this tough decision.” Koo shared this news with its users and employees, spreading deep disappointment and frustration.

Future Plans and Messages

In a LinkedIn post from February, Bidawatka expressed his vision for Indian startups, “Indian digital products are being made to international standards, and it’s time to create global brands from India. As everyone knows, the startup ecosystem globally has witnessed a funding crunch without which Koo would have been on its way to rapid international market expansion.” With this message, he wished for a bright future for Indian startups and stated that Koo’s journey will always be remembered as an inspiration.

Join Our WhatsApp Channel

Conclusion

Koo’s shutdown is a significant event for the Indian startup ecosystem. It highlights that despite big ideas and strong support, economic challenges and monetization issues can impact a startup’s success. However, Koo’s story will live on as an inspiration, motivating Indian entrepreneurs to strive for global recognition.