Koo, an Indian microblogging platform, has halted salary payments for all its employees starting April 2024 due to financial constraints. The decision was reportedly communicated to employees via a Zoom call earlier in April, catching many off guard with no prior notice or explanation provided.
The decision to halt salaries comes amidst a financial hurdle for the microblogging platform, which has struggled to establish a sustainable revenue model despite backing from prominent investors.
Despite this setback, Koo emphasised that it is not resorting to layoffs, a relief to its workforce amid the ongoing uncertainty. However, the company has witnessed a notable reduction in its workforce since 2022, as reported by Inc42.
Senior employees have already departed earlier this year following salary cuts of up to 40 per cent, further highlighting the company’s financial struggles. Koo’s operating income remains modest, with a substantial loss recorded in the fiscal year 2022. The company’s user base has also experienced a significant decline, attributed to the suspension of customer acquisition campaigns since June 2022.
In light of these challenges, the company has been actively seeking a strategic partner or potential acquisition to stabilise its operations. Unconfirmed reports suggest that Dailyhunt is currently in discussions to acquire Koo, indicating a potential shift in the company’s future direction.
Koo is a microblogging platform launched in India in March 2020. It gained popularity as an alternative to Twitter, especially after a series of disputes between Twitter and the Indian government over content moderation and compliance with local laws. Koo allows users to post and share their thoughts in multiple Indian languages, making it more accessible to a wider audience in the country.
