Dailyhunt in Advanced Talks to Acquire Social Network Koo

Media startup Dailyhunt is reportedly in the final stages of negotiations to acquire Bengaluru-based social network Koo, sources familiar with the matter revealed today. The potential deal, which is said to involve a share-swap agreement, could be concluded within a matter of weeks, although the sources requested anonymity due to the sensitive nature of the discussions.

Acquisition Talks Advance

According to insiders, the deliberations come as Koo, often dubbed as India’s answer to Twitter, has been actively seeking fresh capital to fuel its expansion efforts. Despite being available in India and Brazil, the social network has been eyeing broader market penetration, banking on its unique approach of supporting multiple local languages to resonate with a wider audience.

Strategic Partnership Pursued

Koo co-founder Mayank Bidawatka had hinted at the startup’s quest for a strategic partner with robust distribution capabilities to drive its next phase of growth. With over $60 million in funding from prominent investors including Tiger Global and Accel, Koo has been positioning itself for a significant leap forward in its journey.

Confirmation and Denials

When approached for comment, both Dailyhunt and Koo declined to provide official statements regarding the potential acquisition. However, Bidawatka indirectly acknowledged ongoing discussions in a LinkedIn post, emphasising the need for patience until concrete details of the partnership can be shared.

Funding Round Highlights

VerSe Innovation, the parent company of Dailyhunt, recently raised a substantial funding round of $805 million in April 2022, signalling its financial muscle for strategic moves such as acquisitions. With a user base of over 300 million in India through its news aggregator platform and short-video app Josh, VerSe Innovation has been actively expanding its presence in the digital media landscape.

Conclusion

The possible acquisition of Koo by Dailyhunt underscores the evolving dynamics of the Indian startup ecosystem, with digital products vying for international recognition and growth. As the negotiations reach a critical juncture, industry observers await further developments that could reshape the social media landscape in India and beyond.