Unexpectedly, Koo, a well-known Twitter rival and India’s own social networking platform, has announced its shutdown. Co-founders Aprameya Radhakrishna and Mayank Bidawatka expressed this choice on Wednesday in an emotional statement. The founders said, “We explored partnerships with multiple larger internet companies, conglomerates, and media houses but these talks didn’t yield the outcome we wanted.”
Unsuccessful Partnership Talks
The co-founders pointed to failed partnership discussions with major companies as a significant factor in their decision. They emphasized the high costs associated with maintaining a social media platform. “We preferred to keep the app operational, but the substantial costs of running social media services were a decisive factor,” they explained.
Koo’s Peak and Setbacks
When Koo reached its peak, it had 10 million active monthly users, 2.1 million daily active users, and a noteworthy presence of over 9,000 VIPs, including well-known figures from a variety of industries. Nonetheless, the business encountered many difficulties during its aggressive expansion stage. “We were just months away from beating Twitter in India in 2022 and could have doubled down on that short-term goal with capital behind us,” the co-founders said.
Funding Slowdown and Market Mood
The company’s growth trajectory was significantly hindered by a funding slowdown. “Unfortunately for us, the mood of the market and the funding winter got the better of us,” the note mentioned, reflecting on the financial challenges they faced. The co-founders bid farewell to Koo with a poignant reference to its iconic yellow bird logo, saying, “the little yellow bird says its final goodbye.”
Rise Amid Government Push
Koo gained substantial popularity in 2021, amid governmental disputes with Twitter and a growing push for expanding India’s indigenous digital platforms. Endorsements from union ministers and government departments highlighted its influence during that period.
Financial Struggles and Mergers
After raising over $66 million from investors, including 3one4 Capital, Koo was last valued at $274 million. However, since last year, the platform experienced trouble raising fresh funding, leading the company to consider merging with other platforms, though none of these talks have been fruitful.
Co-founders’ Previous Ventures
Prior to launching Koo, Radhakrishna founded the ride-hailing company TaxiForSure, which was acquired by Ola in 2015. Bidawatka, who co-founded Koo with Radhakrishna, was also his colleague at TaxiForSure.
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