Chinese Venture Capital firm Shunwei Capital has exited Bombinate Technologies, the parent company of Koo, after existing investors and a clutch of prominent individuals bought out its minority stake, the company said on Wednesday. Prominent Indians including Former Indian Cricketer Javagal Srinath, BookMyShow Founder Ashish Hemrajani, Udaan Co-Founder Sujeet Kumar, Flipkart Chief Executive Officer Kalyan Krishnamurthy and Zerodha Founder Nikhil Kamath participated in the round to buy out shares of Shunwei Capital. Shunwei Capital had held a little over 9 per cent in Bombinate Technologies. Existing investors along with a bunch of individuals have bought out Shunwei Capital s minority stake in Bombinate Technologies, the parent company of Vokal and Koo, the statement said but did not divulge financial details of the transaction.
Chinese investor exits Koo’s parent company
By Mansoor| Published: 17th March 2021 11:31 pm IST Koo App is a social media platform of India, offers micro blogging like Twitter.
New Delhi: Existing investors, along with a few prominent Indians, have bought out Chinese venture capital firm Shunwei Capital’s minority stake in Twitter’s homegrown rival Koo’s parent company Bombinate Technologies.
Former Indian cricketer Javagal Srinath, BookMyShow Founder Ashish Hemrajani, Udaan Co-Founder Sujeet Kumar, Flipkart CEO Kalyan Krishnamurthy and Zerodha Founder Nikhil Kamat have participated in the round to buy out shares of Shunwei Capital, Koo said on Wednesday.
Shunwei Capital had held a bit more than 9 per cent in Bombinate Technologies.
Giving an exit to its sole Chinese investor Shunwei Capital, Bombinate Technologies, the parent company of Vokal and homegrown microblogging platform Koo, has onboarded investors such as BookMyShow Founder Ashish Hemrajani, Udaan Co-Founder Sujeet Kumar, Flipkart CEO Kalyan Krishnamurthy, Zerodha Founder Nikhil Kamat and former Indian Cricketer Javagal Srinath, who bought the VC’s stake in the company. Without giving any financial details of the transaction, the company said that Shunwei Capital had held a bit more than 9 per cent in Bombinate Technologies. The company said it is a part of its commitment to build an Atmanirbhar app for India and the world.
Govt explains why Koo app has Chinese investment
Koo app was shortlisted as an awardee for AatmaNirbhar App Innovation Challenge under the social media category as it was an eligible participant to be classified as domestic company as per the extant FDI policy.
BusinessToday.In | March 17, 2021 | Updated 22:16 IST
Koo app was developed by an Indian IT company prior to the notification by DPIIT.
The government on Wednesday said that Chinese investment in microblogging app Koo was as per the existing regulations and the app has been developed indigenously.
Replying to a question on if the government was aware of Chinese investment in the parent firm of Koo, Minister of State for Electronics and Information Technology Sanjay Dhotre said that under the extant FDI policy of government, 100 per cent investment through automatic route was allowed for IT companies till notification of Press Note 3 of Department for Promotion of Industry and Internal Trade (DPIIT), dated April 17, 2
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