'X competitor' Indian Koo ceases operation after failed acquisition talks

Koo, an Indian social media platform that positioned itself as a competitor to Elon Musk's X, is shuttering its operations due to the collapse of its buyout talks with Dailyhunt. Despite raising more than $60 million in funding from prominent investors, Koo has struggled to expand its user base and generate revenue over the past couple of years. This is prepared by SSP.

In February, TechCrunch reported that Koo was in discussions with Dailyhunt, a valued internet media startup, for a potential sale. Unfortunately, these talks did not lead to a deal, as Koo's founders shared in a LinkedIn post. They mentioned that although they explored partnerships with larger internet companies and media houses, most of them were hesitant to deal with user-generated content and the unpredictable nature of a social media company.

Koo initially gained popularity in India during a time of conflict between Twitter and the Indian government regarding content removal requests. Seizing the opportunity, Koo positioned itself as a compliant alternative, pledging to adhere to local regulations. This approach attracted many high-profile Indian politicians to the platform, but it failed to gain traction among opposition party members. Additionally, Koo expanded its app to Brazil.

However, Koo's founders acknowledged that the challenging funding landscape influenced their decision to shut down. Like many startups globally, the prolonged funding winter compelled them to focus on scaling revenue and improving finances, which ultimately became a significant hurdle.

In recent years, Indian entrepreneurs and investors have been striving to create native alternatives to popular American platforms such as Facebook, Instagram, WhatsApp, Twitter, and YouTube. It is becoming increasingly apparent that these established companies possess superior capabilities in serving diverse segments of the Indian market.