Koo, Twitter’s Indian rival social media app Koo has raised Rs 51 crore or $6 million in a new round co-led by Tiger Global and Accel Partners with the participation of Kalaari Capital, 3one4 Capital, and Dream Incubator (DI), a Tokyo-based PE firm. This is the second funding round of the Bengaluru-based company in 2022.
The board at Koo has passed a special resolution to issue 5,423 Series B4 compulsory convertible preference shares (CCPS) at an issue price of Rs 94,193.26 per share to raise Rs 51.08 crore or $6.3 million, the company’s regulatory filing with the Registrar of Companies (RoC) shows. The purpose of the offer of Series B4 CCPS is to raise funds for the growth, expansion, marketing, and general corporate activities of the company.
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Tiger Global and Accel Partners have co-led the funding round with Rs 16.47 crore each. Kalaari Capital and 3one4 Capital poured in Rs 8.24 crore each followed by Dream Incubator which infused Rs 1.65 crore.
Aprameya Radhakrishna, co-founder and CEO of Koo said “We have aggressive plans to grow into one of the world’s largest social media platforms in the next few years. Every Indian is cheering for us to get there soon. Tiger Global is the right partner to have on board to realize this dream.”
Koo was founded in March 2020 by Aprameya Radhakrishna, as a micro-blogging platform in Indian languages. It has recently refreshed its brand identity by launching a new logo.
In February, the platform said that Chinese investor Shunwei Capital has sold its minority stake in the company. Existing investors and a bunch of individuals bought out Shunwei’s stake in Bombinate Technologies Private Limited, which is the parent company of Koo and Vokal.
Koo Revenue
Despite the fact that Koo has yet to announce its financial results for FY22, it remained in a pre-revenue stage until FY20 and reported Rs 7.76 lakh in revenue from operations in FY21. the company’s losses increased nearly 3X to Rs 35.18 crore in FY21 as compared to Rs 12.17 crore in FY20, according to the annual financial statements with the RoC.
In June, Koo acquired Nexus-backed Mitron TV in a share swap agreement. Entrackr had exclusively reported about the development. The company also laid off 5% of its workforce during the layoffs season.
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