Dailyhunt is in talks to acquire social network startup Koo


Media startup Dailyhunt is in advanced talks to acquire Bengaluru-headquartered social network Koo, two sources familiar with the matter told me.

The potential deal under discussion involves a share-swap agreement and could be finalized within weeks, the sources said, requesting anonymity because the matter is private.

The discussions come after Koo, which has sought to become a Twitter rival, has aggressively sought new capital for the past year. The social network, available in India and Brazil, is betting on the idea that its approach of supporting multiple local languages ​​will help its eponymous app connect with a larger audience.

Koo co-founder Mayank Bidawatka said in September that the startup — which has raised more than $60 million from investors including Tiger Global, Accel, 3one4 Capital, Mirae Asset and Bloom — was looking for a strategic partner with “distribution strength” for itself. Wanted to find. The “next phase” of the journey.

“From growing rapidly to scaling back growth and proving unit economics, within 6 months of a revenue experiment, we took a 180-degree turn and proved this is a real business,” he wrote.

Dailyhunt, which was last valued at $5 billion, and Koo declined to comment.

Dailyhunt's parent company Verse Innovation reaches more than 300 million users in India through its news aggregator platform and short-video app Josh. It raised a funding round of $805 million in April 2022 from investors including the Canada Pension Plan Investment Board, Ontario Teachers' Pension Plan Board, Sofina Group and Baillie Gifford.

Following the publication of this story, Koo's Bidawatka wrote in a LinkedIn post:

Over the past few months, we have been talking to a number of partners who can help us achieve this.

Our responsibility to the broader community of stakeholders (users, creators, VIPs, investors, policymakers, media) compels us not to share anything prematurely when we want to say more. You are requested to be patient until we share more concrete details of this partnership, which will help Koo take wings organically and challenge global competitors in a meaningful way.

Indian digital products are being made as per international standards and now the time has come to create global brands from India. As everyone knows, the startup ecosystem globally has seen a dearth of funding, without which Koo would have been on the path to rapid international market expansion.