Every week, we see different viral news on social media and news platforms. These stories grab a big chunk of our time as we read, share, and discuss them.
One of the biggest discussions going on right now is about stopping the use of foreign products. People are saying we should also stop using social media apps from foreign companies and start using Indian apps instead.
This is not something new. Back in 2020, when India banned several Chinese apps, there was big talk about building homegrown alternatives. Even after that, with issues like data leaks and privacy concerns from foreign platforms, the demand for Indian social apps only grew louder.
But here’s the real question: If everyone is demanding an Indian social media platform, why is no one building one that becomes successful?
If you are thinking the same, here is the simple answer. There have been many attempts in the last decade. From Hike Messenger to the recent Koo app, many tried to create a platform like Twitter or Instagram but failed to scale.
To really understand where the problem lies, let’s take a look at the journey of Koo. We will see how it started, how far it went, and why it ultimately shut down most of its operations.
In 2020, during the heat of discussions around digital self-reliance and national security, two Indian entrepreneurs, Aprameya Radhakrishna and Mayank Bidawatka, decided to take a bold step. They started with the question of “Why should India rely on foreign social media platforms when we have enough talent to build our own? That’s how Koo was born.
The idea was simple to Create a micro-blogging platform just like Twitter, where people could express their thoughts in their own local Indian languages. India is full of regional language speakers, but global platforms don’t always cater well to them. Koo wanted to fix that gap.
Now before I get into details, let me clear it. Koo didn’t fail because they ran out of money or no one supported them with funding. They raised close to $70 million in their journey. Many big investors, such as Tiger Global, backed them. Even Ashneer Grover backed them in their journey. So, in first place, funding is not a problem.
If we have to point out the biggest reason why Koo and other Indian social media platforms failed, it’s this one simple fact: Social media works because of network effects. Which means a social media platform is only useful if the people you care about are already there.
Think about it. Why do most of us use Twitter or Instagram? Because our friends, celebrities, media outlets, and influencers are already there. We don’t go to a platform just to post content in the hope that someone will see it someday. We want to see what others are sharing, what trends are going on, and what interesting people are talking about… right now.
This is where Koo struggled the most. Even though they supported Indian languages and had big government officials on board, they couldn’t build active, engaging communities. There weren’t enough content creators, influencers, or popular figures posting regularly. Without them, regular users didn’t see a reason to spend their time there.
So, people who joined haven’t used it for much time. For your information, Koo once stood with a 9 million active user base, but it failed to retain them. So, no big amount of funding or good intentions could fix this fundamental issue. And once a platform misses that critical network effect, it becomes almost impossible to recover.
Even that’s what happened. Threads launched by Instagram. First, they had 100 million users, but within weeks there was no activity, and it was finished.
Another reason why Koo eventually shut down was severe financial problems and high operating costs. It got funding in its early stages and it spent a lot, when there is no traction, investors would think twice to invest more right?
Even though Koo’s revenue grew by 75% in FY22 to reach around ₹14 lakh, their expenses grew more than 8 times to ₹202 crore. This created huge losses. The big costs came from things like advertising, employee salaries and benefits, technology and server expenses, etc.
While big brands like HDFC, Amul, and Snapdeal did advertise on Koo, it wasn’t enough to create a steady and sustainable income. In fact, by early 2023, Koo even had to cut its PR and communication agency contract to save money and started handling PR internally because they didn’t have enough funds.
An expert in some articles pointed out the biggest lesson here is not just about getting millions of users fast. The real challenge is keeping them active and building a business model that brings regular revenue.
In the end, Koo showed us that having big funding and good intentions isn’t enough. Without a clear revenue plan and strong user engagement, even the most promising platforms struggle to survive.
So, when we sum up all the journey, there are two things we need to realize. When we want to build something that revolutionizes social media. It shouldn’t be a replica of existing apps.
So, if you are someone building something unique, you definitely have a long way to go, but if you are aiming to build an Indian version of WhatsApp, Twitter, or Instagram. Think of Koo.
USP is something that helps you to build a long-lasting impact and helps you in getting both customers and investors.
Also Read: Samved Ventures Collaborates with IIT Kanpur’s FIRST to Advance Indian Technology Innovation
