'Koo' No More: Indian App Seeks Exit After Merger Talks Stall

Indian microblogging platform Koo, once seen as a rival to X (formerly Twitter), has announced its decision to shut down operations after failed merger negotiations, including talks with DailyHunt. The four-year-old startup's move was triggered by the collapse of its potential acquisition, which would have provided the necessary capital to sustain its ambitious growth plans.

Founded in 2020 by Aprameya Radhakrishna and Mayank Bidawatka, Koo aimed to democratize expression by enabling users to share their views in their native languages. Despite amassing over $60 million in funding from investors like Tiger Global and Accel, and reaching a peak valuation of $275 million, the company struggled to maintain its growth trajectory and generate profits in the face of a prolonged funding winter.

In a candid LinkedIn post, Koo's founders expressed their efforts to form alliances with larger internet firms, conglomerates, and media houses, but these talks did not yield the desired outcome. They cited the high cost of technology services required to keep a social media app running as a key factor in their decision to shut down.

The demise of Koo underscores the challenges faced by homegrown startups in building ambitious, world-beating products from India. The founders emphasized the need for patient, long-term capital to compete against established global giants in sectors like social media, AI, and electric vehicles. As Koo prepares to wind up its services, the founders have announced plans to evaluate making its assets available as a digital public good to enable social conversations in native languages.