Two sources informed me that media firm Dailyhunt is in advanced discussions to purchase Bengaluru-based social network Koo.
Given the privacy of the situation, the sources said a share-swap arrangement might be concluded within weeks.
Koo, which aspired to challenge Twitter, aggressively sought more money last year. The social network, accessible in India and Brazil, hopes its multilingual approach will help the eponymous app appeal to the public.
In September, Koo co-founder Mayank Bidawatka said the business, which has raised $60 million from Tiger Global, Accel, 3One4 Capital, Mirae Asset, and Blume, was seeking a strategic partner with “distribution strength” for its “next phase” of growth.
He stated, “From growing rapidly to cutting down on growth and proving unit economics, within 6 months of revenue experimentation, we took a 180-degree turn and proved that this is a real business.”
Koo and Dailyhunt, worth $5 billion, refused to comment.
Dailyhunt’s parent company, VerSe Innovation, reaches over 300 million Indians via its news aggregator and short-video app Josh. In April 2022, the Canada Pension Plan Investment Board, the Ontario Teachers’ Pension Plan Board, Sofina Group, and Baillie Gifford invested $805 million.
Koo’s Bidawatka said on LinkedIn after this story:
We have been talking to partners who might assist us in accomplishing this for months.
Our obligation to a larger group of stakeholders (users, artists, VIPs, investors, policymakers, and media) prevents us from sharing too soon, even if we want to say more. Please be patient until we can reveal more information about this relationship that will help Koo grow organically and face global competition.
Now that Indian digital goods meet international standards, it’s time to develop global brands. Everyone knows that the startup environment worldwide has faced a capital crisis, without which Koo would have expanded rapidly internationally.
Dailyhunt pursuing Koo social network acquisition.
