Koo, which is an Indian social media app, was once seen as a rival to X (formerly Twitter). Now, the time has come that Koo is shutting down. On July 3, 2024, they announced their closure. Koo had a backing from the investment firm Tiger Global. The decision came after unsuccessful negotiations for a sale or merger with several companies.
Failed Negotiations
Sources say Koo tried to partner with larger internet companies, conglomerates and media houses. One of them includes DailyHunt. However, these talks did not lead to an agreement. Most of the potential partners did not want to deal with user-generated content. Many were not confident about the unpredictable nature of a social media company. Some companies even changed their priorities just before signing.
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High Operating Costs
Koo founder Aprameya Radhakrishna, in his LinkedIn post explained that the cost of technology services required to keep a social media app was very high. Those running costs were a significant factor in the decision to shut down.
Vision and Achievements
Koo was created to fill a gap in the market. They allowed people to communicate in their local languages rather than just English. At its peak, Koo had about 2.1 million daily active users and 10 million monthly active users. The app had over 9,000 VIP users. This included prominent personalities from various fields.
Impact of Funding Challenges
The prolonged funding difficulties are referred to as a “funding winter”. It significantly impacted Koo’s growth plans. Social media platforms require long-term investment to scale up and generate revenue. Koo needed 5 to 6 years of sustained funding. The tough market conditions hindered its progress.
Support and Gratitude
Aprameya and co-founder Mayank Bidawatka expressed their gratitude to their team, investors, users, journalists and everyone who supported Koo. They acknowledged the hard work and dedication of their team. This was the team which helped build the platform from scratch.
Future Aspirations
The founders hope to share some of Koo’s assets with others who have a vision for India’s social media landscape. They also mentioned the possibility of making Koo a digital public good to facilitate social conversations in native languages worldwide.
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Closing Remarks
In their final message, Aprameya and Mayank emphasized the need for patient & long-term capital. Without those, it would be difficult to build world-class products from India. They told that they would return to the entrepreneurial scene in the future. With this they thanked everyone for their support and love.
The shutdown of Koo shows the challenges faced by startups in the social media space. Especially the main issue of securing sustained funding is shown. Despite its closure, Koo’s founders remain hopeful for the future.
About the Author
Mr. Radhesh Tarang Shah, is a management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
