KOO Shutting Down: Why India’s Twitter rival is closing operations

In a surprising turn of events, Koo, the homegrown social media platform often touted as a viable alternative to Twitter (now X), has announced its decision to shut down. Co-founders Aprameya Radhakrishna and Mayank Bidawatka conveyed this development in a heartfelt note on Wednesday. "We explored partnerships with multiple larger internet companies, conglomerates, and media houses but these talks didn't yield the outcome we wanted," stated the note. Koo is backed by Accel and Tiger Global.

Why is Koo shutting down?

Co-founders cited unsuccessful partnership discussions with major internet companies, conglomerates, and media houses. Despite their preference to keep the app operational, the founders highlighted the substantial costs associated with maintaining social media services as a decisive factor behind their tough decision.

Koo, which once boasted 2.1 million daily active users at its peak, along with 10 million monthly active users and a significant roster of over 9,000 VIPs, including prominent personalities across various fields, faced a setback amidst its ambitious growth plans.

"We were just months away from beating Twitter in India in 2022 and could have doubled down on that short term goal with capital behind us," the co-founders lamented.

However, the company encountered a funding slowdown during its peak phase, hindering its growth trajectory significantly.

"Unfortunately for us, the mood of the market and the funding winter got better of us," the note mentioned poignantly, as the co-founders bid farewell with a reference to Koo's iconic yellow bird logo, stating, "the little yellow bird says its final goodbye."

Koo had gained substantial popularity in 2021 amid governmental disputes with Twitter (now X) and a growing push for expanding India's indigenous digital platforms. Its rise was marked by endorsements from union ministers and government departments, underscoring its influence during that period.

Koo was last valued at $274 million after securing over $66 million from investors, including 3one4 Capital.

Prior to launching Koo, Radhakrishna founded the ride-hailing company TaxiForSure, which Ola acquired in 2015. Bidawatka, who co-founded Koo with Radhakrishna, was also his colleague at TaxiForSure.

Koo has faced difficulties in raising new capital since last year, prompting the company to explore mergers with various platforms. However, none of these discussions were successful.