Case Study: The Rise and Fall of Koo — An Indian Microblogging Platform

Introduction

Koo was an Indian microblogging and social networking service, owned by Bangalore-based Bombinate Technologies. It was co-founded by entrepreneurs Aprameya Radhakrishna and Mayank Bidawatka. Launched in 2020, Koo gained significant attention when the Prime Minister of India encouraged citizens to become “Atmanirbhar” (self-reliant). Positioned as a direct competitor to Twitter (now X.com), Koo quickly became prominent in the market. It won the government’s Atmanirbhar App Innovation Challenge, which selected the best apps from around 7,000 entries across the country. As of November 2022, the company was valued at over $275 million, with investors including Tiger Global Management, Blume Ventures, Kalaari Capital, Accel, and former Infosys CFO TV Mohandas Pai’s 3one4 Capital.

Koo’s standout feature was its multilingual capability. In 2020, Koo saw 2.6 million installs from Indian app stores, compared to Twitter’s 28 million. From February 6 to 11, installations of Koo increased rapidly, largely due to a weeklong standoff between Twitter and the Government of India over Twitter’s refusal to block accounts during the 2020–2021 Indian farmers’ protest.

Early Rise and Government Intervention

Twitter complied with a majority of the government’s orders but refused some, citing freedom of expression. Following this standoff, many Cabinet Ministers, such as Piyush Goyal, various government officials, and supporters of the Bharatiya Janata Party moved to Koo and urged their supporters to follow. Koo was being used by the government to challenge Twitter. However, this early rise, driven by government support and positioning Koo as the “Indian alternative to Twitter,” eventually led the app in the wrong direction. Koo’s rapid user growth occurred without a thorough understanding of user behavior and psychology.

The Indian Mentality

The “Atmanirbhar” term resonates deeply within Indians, but they often do not communicate this feeling openly. Indians tend to prefer what works globally, believing that if something is successful worldwide, it will succeed in India as well. Positioning a brand as Indian often unintentionally devalues it instead of evoking national pride. Globally successful social media brands do not position themselves as country-specific. Instead, they focus on fulfilling specific user needs, such as Facebook for connecting with friends, WhatsApp for easy messaging, Pinterest for sharing interests, LinkedIn for professional networking, and YouTube for creating and sharing content.

Missteps in Branding and Market Understanding

When something is positioned as an alternative, it can be perceived as inferior. For example, Bisleri and Blisleri, Adidas and Abibas. This perception can penetrate the market but prevents surpassing the competition, leading to a saturation point.

Koo branded itself as Twitter’s cousin. Like a family member working hard to gain traction and create space for themselves, there is always one original — one Facebook, one Instagram, one Shah Rukh Khan, one Amitabh Bachchan, one Sachin Tendulkar, one Steve Jobs. While one can take inspiration, blindly copying will not work. Koo’s logo and branding had similarities with Twitter, which did not help.

Empathizing Market Understanding

In China, country-specific brands thrive due to government pressure and support. When there is no alternative available, people will use what is provided. However, in an open market with no competition bars and global brands, understanding the market and user behavior is crucial. Social media users have micro-interactions with platforms, and failing to cater to these can lead to failure.

What Could Have Been Done

Koo saw issues faced by indian government with hate speech and misinformation. If it had positioned itself as a secure and reliable network where false and harmful messages were banned, it could have been a massive hit. The logo should have had a unique identity, and the Indian persona should have been conveyed subtly. The UI color scheme should have been more related to blue or darker shades to convey trust and assurance. Yellow is associated with growth but did not convey the right message for Koo. Removing the emphasis on “Indian” identity in favor of people’s security would have broadened its appeal.

Conclusion

Koo’s journey shows the potential and challenges for Indian entrepreneurs competing with global brands. While national pride can drive initial success, sustainable growth requires understanding market dynamics, user behavior, and effective branding. Koo’s experience highlights the importance of creating a unique identity and value proposition in a competitive global market. Despite its setbacks, Koo’s story underscores the potential for Indian innovation to lead on the world stage. Failure is a stepping stone, and with the right strategies, the next big success story may well originate from India.