Koo, a social media platform that works as an alternative to Twitter in the Indian market, has recently made headlines for its financial condition.
The company spent Rs 202 crores but only 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 income 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 Koo 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 international ones as Koo was introduced in Brazil last year and supports Portuguese as well.
On the Android and iOS operating systems, Koo has also had a sizable number of app downloads totaling about 60 million
The only relief was that the firm collected Rs 4.74 crore 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 operational income.
The amount spent on advertising and marketing, employee perks, legal and professional fees, software, licenses, cloud servers, app embeds, and other communication-related expenditures were significantly less than the company’s massive spending of Rs 202 Crores.
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% 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.