Koo shuts down operations amid failed merger talks

Indian social media app Koo, which was once considered a rival to X (formerly Twitter), is shutting down its operations, as confirmed by founder Aprameya Radhakrishna in a LinkedIn post.

This decision follows multiple unsuccessful rounds of negotiations for potential sale and merger, including discussions with DailyHunt, according to a report by the Economic Times. 

In a joint statement with co-founder Mayank Bidawatka, Radhakrishna emphasized the necessity of patient, long-term capital to build world-class products from India, spanning sectors such as social media, AI, space, and electric vehicles. "These industries require substantial investment, especially when competing against global giants," Radhakrishna stated.

The founders stressed the importance of strategic support over market fluctuations to ensure the growth and sustainability of innovative companies.

"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. These aren't to be looked at as profit-churning machines within 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," Radhakrishna explained.

Koo, which was last valued at $275 million, had raised over $66 million from investors such as 3one4 Capital, Accel, and others. Radhakrishna's previous venture, TaxiForSure, was acquired by Ola in 2015.