Koo, the Indian social media platform positioning itself as a competitor to Elon Musk’s X, is shutting down after acquisition talks with Dailyhunt fell through.
Despite raising $60 million from investors like Tiger Global and Accel, Koo struggled to grow its user base and generate revenue in the past two years.
TechCrunch reported in February that Koo was in discussions with Dailyhunt, a media startup valued at $5 billion, for a potential sale. Unfortunately, the talks did not lead to a deal, according to Koo founders.
The founders mentioned in a LinkedIn post that they explored partnerships with various internet companies and media houses, but most were hesitant to deal with user-generated content and the unpredictable nature of a social media platform.
Koo aimed to attract Indian users by offering a platform where they could express themselves in multiple local languages, gaining popularity during a Twitter-Indian government conflict. This conflict led to Koo positioning itself as a compliant alternative, which attracted several high-profile politicians to the platform.
Despite expanding to Brazil, Koo struggled to navigate a funding shortfall that impacted startups globally, leading to their decision to cease operations.
Indian entrepreneurs and investors have long sought to create local alternatives to popular American platforms like Facebook and Twitter. However, it has become evident that these American companies excel in serving the diverse Indian market.
