Koo, India’s alternative to X, is seeking a strategic partner with strong distribution capabilities as it enters its next growth phase. This move comes as the startup faces financial challenges despite previous backing from Accel and Tiger Global.
Mayank Bidawatka, co-founder of Koo, expressed in a LinkedIn post on Friday that the initial plan was to focus on scaling the platform. However, due to changing market conditions, they have had to pivot toward revenue generation. Within a span of six months of experimenting with revenue generation, the company shifted its strategy by 180 degrees and successfully demonstrated the viability of their business model.
Koo believes that its emphasis on supporting multiple local languages sets it apart and will enable the app to resonate with a wider audience. Over the past two years, the platform has gained popularity among Indian politicians and sports figures.
Despite efforts to secure funding for several quarters, Koo has been unable to do so. Therefore, the company is actively seeking either investment or a strategic partnership to navigate its next phase. Bidawatka believes that, given the current slow investor market, partnering with a party possessing strong distribution capabilities will provide Koo with a substantial boost in user acquisition and growth.
Koo has been facing financial difficulties in the past, laying off 30% of its employees this spring. Koo is also considering a strategic sale. The company has reportedly approached various potential partners, including Microsoft.