Koo was trying to elevate funds or tie up with a strategic accomplice to scale operations, in a funding surroundings that has turned extraordinarily robust for startups, cofounder Mayank Bidawatka had first stated in September 2023.
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However the talks have taken longer than anticipated amid a funding winter. Bidawakta stated in a LinkedIn put up on Thursday that the agency has accomplished the whole lot to increase its runway in order that workers and distributors might receives a commission.
“Koo stays operational. It’s very properly constructed and a totally automated product that wants little handbook intervention to operate. There’s a proud group that stands behind it, no matter the place they’re right this moment,” he stated.
Additionally in September 2023, a report from The Arc had stated Koo was valued at Rs 2,230 crore in its final funding spherical in June 2022. Citing sources, it added that the corporate was then left with a money steadiness of nearly Rs 20 crore within the financial institution.
An organization spokesperson declined to touch upon ET’s queries on the matter.
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Bidawakta stated that the founders – TaxiForSure founder Aprameya Radhakrishna and himself – had put in a “substantial quantity” from their private funds in order that salaries for March could possibly be paid to workers.Earlier on this yr, in February, Koo was in talks for a possible acquisition by VerSe Innovation, the father or mother agency of reports aggregator Dailyhunt and brief video platform Josh.
The corporate additionally carried out wage cuts earlier. “This fashion everybody might maintain with out having to search for a job at a time when the hiring throughout startups is at its all-time low. The delay within the partnership hurts everybody with out an exception nevertheless it’s a course of that’s taken its personal time,” Bidawakta stated.
Future salaries will solely be paid as soon as a partnership is concluded, he added. The event was first reported by information web site Inc42.
Koo was as soon as touted as an Indian competitor to microblogging website X (erstwhile Twitter), and was in focus when a lot of Indian ministers moved to utilizing the platform amid a spat with X throughout the farmers’ protest in early 2021. The 2 apps had a lot of similarities in person interface.
Over the previous yr, Koo has struggled amid a wider funding winter, firing 30% of its 260-strong workforce as of April final yr. Bidawatka had stated in September that the corporate was on the lookout for fundraising alternatives or tie-ups with a strategic accomplice that might assist it scale up its operations.
The corporate has up to now raised over $65 million from traders like Tiger World Administration, Accel India, 3one4 Capital, Mirae Asset and Blume Ventures.
