Media startup Dailyhunt is reportedly in advanced discussions to acquire the Bengaluru-based social network Koo. According to sources familiar with the matter, the potential deal involves a share-swap agreement and could be finalized within weeks. The sources, who requested anonymity, revealed that the deliberation is currently in private stages.
Key Takeaway
Dailyhunt is in advanced talks to acquire Koo, a social network startup aiming to rival Twitter. The potential deal involves a share-swap agreement and could be finalized within weeks. Koo has raised over $60 million from investors and is seeking a strategic partner for its next phase of growth.
The Potential Acquisition
Koo, a social network aiming to rival Twitter, has been actively seeking new capital, with the app available in India and Brazil. The startup has raised over $60 million from investors including Tiger Global, Accel, 3One4 Capital, Mirae Asset, and Blume. Co-founder Mayank Bidawatka expressed the startup’s interest in finding a strategic partner with “distribution strength” for its next phase of growth.
Response and Valuation
Both Dailyhunt and Koo declined to comment on the potential acquisition. VerSe Innovation, the parent company of Dailyhunt, has a significant user base in India through its news aggregator platform and short-video app Josh. The company raised $805 million in funding in April 2022 from investors including Canada Pension Plan Investment Board, Ontario Teachers’ Pension Plan Board, Sofina Group, and Baillie Gifford.
Future Plans
Following the news, Koo’s Bidawatka shared on LinkedIn that the company has been in discussions with multiple partners to achieve its goals. He emphasized the responsibility towards various stakeholders and the need for patience until concrete details of the partnership can be shared. Bidawatka also highlighted the potential for Indian digital products to meet international standards and the importance of creating global brands from India.
