Koo halts salary payments from April; founder says company 'will remain operational'
Koo is halting salary payments to employees from April — the outcome of a delay in its search for a partner that can acquire the company.
Koo was looking to raise funds or tie up with a strategic partner to scale operations, in a funding environment that has turned extremely tough for startups, cofounder Mayank Bidawatka had first said in September 2023.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Professional Certificate in Product ManagementVisitIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitIndian School of BusinessISB Product ManagementVisitBut the talks have taken longer than expected amid a funding winter. Bidawakta said in a LinkedIn post on Thursday that the firm has done everything to extend its runway so that employees and vendors could get paid.
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“Koo remains operational. It’s very well built and a fully automated product that needs little manual intervention to function. There’s a proud team that stands behind it, irrespective of where they are today,” he said.
Also in September 2023, a report from The Arc had said Koo was valued at Rs 2,230 crore in its last funding round in June 2022. Citing sources, it added that the company was then left with a cash balance of just about Rs 20 crore in the bank.
A company spokesperson declined to comment on ET’s queries on the matter.
Bidawakta said that the founders – TaxiForSure founder Aprameya Radhakrishna and himself – had put in a “substantial
