Media startup Dailyhunt is reportedly in advanced discussions to acquire Koo, a social networking platform headquartered in Bengaluru. According to insider sources, the acquisition talks involve a share-swap agreement and could be finalized within a few weeks. These sources, preferring anonymity due to the confidential nature of the negotiations, disclosed the ongoing developments.
Koo, positioning itself as a contender to Twitter, has been actively seeking additional funding over the past year. With a focus on serving diverse linguistic communities in India and Brazil, Koo aims to broaden its appeal. Co-founder Mayank Bidawatka previously indicated the startup’s intention to collaborate with a strategic partner possessing robust distribution capabilities for its next phase of growth.
Despite Dailyhunt’s last valuation standing at $5 billion, both it and Koo declined to comment on the potential acquisition. VerSe Innovation, Dailyhunt’s parent company, boasts a significant user base exceeding 300 million in India through its news aggregation platform and short-video app Josh. Notably, it secured a substantial funding round of $805 million in April 2022 from various investors, including Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board.
In response to queries, Bidawatka hinted at ongoing discussions with multiple potential partners but refrained from sharing further details prematurely. He emphasized the responsibility towards stakeholders, including users, creators, investors, and policymakers, urging patience until concrete details of the partnership emerge. Bidawatka also stressed the need for Indian digital products to meet global standards and highlighted the role of funding in enabling rapid international expansion, considering the challenges posed by the current global funding landscape.
The potential acquisition of Koo by Dailyhunt reflects strategic maneuvering within India’s burgeoning startup ecosystem, signaling the growing ambition of Indian tech companies to establish themselves as global players. Despite the challenges posed by funding dynamics, this move underscores a broader trend of Indian startups aiming for international expansion and recognition.
As discussions progress behind closed doors, the tech industry awaits further developments with anticipation, anticipating the emergence of new synergies and opportunities in the digital realm. The potential integration of Koo’s social networking platform with Dailyhunt’s existing offerings could pave the way for innovative solutions catering to diverse user needs in the evolving digital landscape, further solidifying India’s position as a tech powerhouse on the global stage.
