Koo, a social media platform that has positioned itself as a rival to Twitter in the Indian market, has recently made headlines for an unusual reason: the company reportedly spent Rs 202 crores but was only expected to make Rs 14 lakhs in revenue for the Financial Year 2022, in addition to experiencing a massive increase of roughly six times in overall losses. From Rs 8 lakh in FY21 to Rs 14 lakh in FY22, the company’s operations revenue saw a jump of 75%. However, this was insufficient, as the company maintained the status quo and continued to operate in the pre-revenue phases even after the end of its second fiscal year.
The microblogging platform was established in 2020 and enables users to communicate through text, audio, and videos as well as supporting the development of communities. As of right now, the app supports 11 regional languages, including a few foreign ones as Koo was introduced in Brazil last year and supports Portuguese as well. The only solace was that the company collected Rs 4.74 crores from interest, gain on investments, and other non-operating income, which increased its total revenue to Rs 4.88 crores in FY22 despite only generating Rs 0.14 crore in operating income. The amount spent on employee perks, legal and professional fees, software, licences, cloud servers, app embeds, and other communication-related costs, however, was far less and caused the company to incur enormous losses.
What a tweet is to Twitter, a koo is to Koo, but the Koo platform has a lot to catch up on as Koo is already planning to promote a subscription- and advertising-based model as well as is working with creators in a revenue-share format. Twitter (India) registered 81.5 percent growth in revenue to Rs 156.75 crore in FY22 even after its own share of loss reporting a net loss of nearly Rs 32 crore in the country during FY22.
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