DailyHunt In Advanced Talks To Snap Up Social Media Platform Koo

Media platform Dailyhunt is in advanced discussions to acquire homegrown social media platform Koo, a deal which includes a share-swap agreement and might be concluded within weeks.

The development was first reported by TechCrunch.

“I had alluded to a strategic partnership that would help us grow organically. Over the past few months, we have been talking to multiple partners who could help us achieve this,” Mayank Bidawatka, cofounder, Koo, said in a LinkedIn post.

In the post, Bidawatka highlighted the adherence of Indian digital products to international standards and the need to create global brands from India. He acknowledged the global funding crunch in the startup ecosystem, stating that without it, Koo would have been on its way to rapid international market expansion.

The social network, accessible in India and Brazil, believes that its strategy of supporting multiple local languages will enable the app to connect widely with the larger masses.

“We have no comment on recent speculations; our focus remains on our core objectives,” VerSe Innovation spokesperson told Inc42.

Founded by serial entrepreneurs Radhakrishna and Mayank Bidwatka in March 2020, Koo, owned by Bangalore-based Bombinate Technologies, shot to fame amid an intense stand-off between the government and X (erstwhile Twitter) over social media intermediary guidelines. It is widely viewed as India’s substitute for Elon Musk’s X.

In September last year, Bidawatka said that the company was searching for a strategic partner. Back then, he said, “Transitioning from rapid growth to focusing on unit economics within six months of revenue experimentation, we made a 180-degree turn and demonstrated the viability of this being a genuine business.”

The development comes at a time when, VerSe Innovation, the parent company of Dailyhunt and Josh, secured debt capital of INR 50 Cr ($6.25 Mn) from Alteria Capital, the development coincides with VerSe reporting substantial losses. In the financial year 2022-23 (FY23), the company recorded losses amounting to INR 1,909.7 Cr, marking a 25% decrease from INR 2,563.3 Cr in the previous fiscal year. However, operating revenues saw a notable 51% increase, reaching INR 1,456.5 Cr in FY23.

Established in 2007 by Virendra Gupta and later joined by Umang Bedi, VerSe Innovation operates the news aggregator DailyHunt and the short video platform Josh.

The platform has accumulated over $1.7 Bn in funding across multiple rounds, with notable investors including Google, Microsoft, and Sofina.