 "No more cooing: India's own Twitter alternative Koo calls it quits")
Koo, the Indian social media platform that emerged as a contender to X (formerly Twitter), is shutting down due to financial difficulties and an unpredictable market environment. The decision marks the end of a four-year journey which included significant achievements but ultimately became constrained by economic challenges. The news was shared by founders Aprameya Radhakrishna and Mayank Bidawatka in a "goodbye" post on LinkedIn on Wednesday.
Koo was created to bridge the language gap in social media, where most platforms are predominantly English-centric.
"We wanted to democratise expression and enable a better way to connect people in their local languages. Most global products are dominated by Americans. We believe that India should have a place at the table," the post read.
Koo, founded in 2020, quickly gained traction as an Indian alternative to X. It was extensively promoted by celebrities and ministers and managed to attract investor interest, expanding its presence to markets like Nigeria and Brazil. The platform, known for its yellow bird logo, had nearly 60 million downloads since its inception and supported over 10 languages.
Despite early success, including raising $4.1 million in its Series A round in February 2021 and an additional $31 million led by American investment firm Tiger Global three months later, Koo faced financial difficulties. By June 2022, Koo had raised over $57 million, reaching a peak valuation of $285.5 million.
At its peak, Koo boasted approximately 2.1 million daily active users and around 10 million monthly active users, including over 9,000 VIPs from various fields. The platform had a significant engagement rate, with a 10 per cent like ratio—far surpassing X's engagement metrics. In 2022, Koo was close to overtaking X in India and had the potential for further growth with sufficient capital.
More From This Section
Why did Koo fail?
Despite its initial success, Koo struggled to secure additional funding and was forced to reduce its workforce significantly. The final blow came when acquisition talks with Dailyhunt fell through.
Radhakrishna and Bidawatka explained that failed partnership talks with larger internet companies, conglomerates, and media houses were a major factor. The high cost of maintaining technology services for a social media platform and the unwillingness of potential partners to handle user-generated content contributed to the platform's demise.
A prolonged funding winter at Koo’s peak hindered growth plans. The "unpredictable market" conditions and lack of "long-term capital investment" proved detrimental to the platform.
"Koo could have easily scaled internationally and given India a global brand that was truly made in India. This dream will remain," they said.
Despite the closure, Radhakrishna and Bidawatka remain optimistic about their future endeavours and grateful for the support from their team, investors, and users.
"We are entrepreneurs at heart and you will see us back in the arena one way or another. Till then, thank you for your time, attention, good wishes and love. The little yellow bird says its final goodbye," concluded the founders.