Koo initially benefited from Twitter’s dispute with the Indian government, which prompted many Indian users, including government officials, cricketers, and Bollywood stars, to switch to the local platform. However, Koo’s current liquidity crisis coincides with a global downturn for technology firms and a slump in investment activity.
Despite the challenges, Koo is “well capitalised” with more than 60 million downloads, and its co-founder, Mayank Bidawatka, claims that the company is attempting to become profitable through monetisation initiatives. He also highlighted that the firm has one of the greatest revenue per-user rates among social media companies.
Koo acknowledged the need for “efficient and conservative approaches” for companies of all sizes during the current crisis. The start-up claimed that it provided support to its laid-off employees through compensation packages, expanded health benefits, and outplacement assistance.
Koo has faced tough competition from other Indian social media firms and international rivals. However, it says that within six months of starting its monetisation efforts, it had one of the highest ARPUs (average revenue per user) per DAUs (daily active users) in comparison to its peers.
In June 2021, Koo expanded its operations to Nigeria, two months after the Nigerian government suspended Twitter operations in the country. The Nigerian government accused Twitter of undermining “Nigeria’s corporate existence.” Koo’s official account was launched less than a week after the Twitter ban, and it encouraged Nigerians and other federal and state agencies to register on the platform.
The move to Nigeria was a strategic one for Koo, as the country has a large population of young people and has become an important market for social media firms. However, the company faces stiff competition from Twitter and other established players in the Nigerian market.
Koo’s expansion into Nigeria was viewed by many as an opportunity for the start-up to become a major player in the African market. The company also announced plans to launch operations in other African countries, including Kenya and Ghana.
Koo’s experience highlights the challenges faced by start-ups in the highly competitive and rapidly evolving technology industry. Many of these companies rely on funding from investors to grow and expand, and when funding dries up, they are forced to lay off staff or even shut down entirely.
However, Koo remains optimistic about its future prospects. The company’s co-founder, Aprameya Radhakrishna, has stated that Koo aims to become a global social media platform that caters to a diverse range of users. He has also stressed the importance of innovation and continuous improvement in meeting the needs of its users.
As Koo continues to face tough competition from established players in the Indian and African markets, it remains to be seen whether the start-up will be able to achieve its ambitious goals. However, with its strong user base and innovative approach to monetisation, Koo may be well-positioned to succeed in the highly competitive social media landscape.