- ByStartupStory | July 4, 2024
Microblogging platform Koo, often dubbed a rival to X, announced its decision to shut down operations. The move follows unsuccessful acquisition talks with multiple companies, including Dailyhunt. Koo’s cofounder Aprameya Radhakrishna disclosed the news in a LinkedIn post on Wednesday.
Koo, which has raised over $50 million from prominent investors such as Tiger Global, Accel, 3one4 Capital, Kalaari Capital, and Blume Ventures, faced challenges in securing new capital since last year. This financial struggle prompted the platform to explore potential mergers, all of which ultimately fell through.
“Patient, long-term capital is essential to build ambitious, world-beating products from India, be it in social media, AI (artificial intelligence), space, EV (electric vehicle) or other futuristic categories,” Radhakrishna said in a joint post with cofounder Mayank Bidawatka. “It will need a lot more capital when the space has a global giant already.”
Radhakrishna emphasized the need for a strategic perspective to support and sustain such ambitious ventures, stating, “And when one of these companies takes off, it can’t be left to the whims of the capital market, which goes up and down. It needs a strategic outlook to safeguard it and make it thrive.”
Highlighting the long-term vision required for success, he added, “These aren’t to be looked at as profit churning machines in two years from launch. They need to be nurtured for a larger long-term play. We would love to see that long-term view for large bets from India.”
Koo’s shutdown underscores the difficulties faced by local social media platforms in competing with global giants. ShareChat, another prominent Indian social media app, has also experienced significant operational reductions and restructuring, including large-scale layoffs, further highlighting the tough landscape for homegrown digital platforms.
