Media platform Dailyhunt is in advanced discussions to acquire homegrown social media platform Koo, reported TechCrunch.
According to sources, the deal is expected to be finalised "within weeks" and involves a share-swap agreement.
In September last year, Koo co-founder Mayank Bidawatka said the next stage for the company is to to "build scale and that will happen with either funding or through a strategic partnership with someone who already has scale."
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.
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.
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.
VerSe Innovation, the parent firm of Dailyhunt, reaches more than 300 million users in India through its news aggregator platform and short-video app Josh. It raised a funding round of $805 million in April 2022 from investors including Canada Pension Plan Investment Board, Ontario Teachers’ Pension Plan Board, Sofina Group and Baillie Gifford.
Sources: TechCrunch, Inc42
