Clarification made by the government regarding China's investment in Koo app, claims to be as a rule

- The Chinese firm's investment in Cooney's parent company is less than 9 percent

New delhi date. Thursday, March 18, 2021

According to the government, the Chinese company's investment in the microblogging coupe app is as per the rules and the app has been developed in the country.

What is the case

It has been a hot topic since many government departments and celebrities joined the coup. It has come to be known as the native version of Twitter. But a new controversy has erupted since then, with Chinese parent Shunwei Capital investing in its parent company, Bombinate Technology. However, its investment in the company is less than 9 per cent.

Question in Lok Sabha

The question in the Lok Sabha was, does the government know that a Chinese firm has an investment in Koo App's parent company?

In a written reply to this question, Minister of State for Electronics and IT Sanjay Dhotre said that before April 17, 2020, 100 per cent investment was allowed in IT companies through automatic route. As a rule this investment was made before. Prior to April 17, 2020, the government had issued a new notification stating a strict scrutiny for FDI from neighboring countries.

These are major investors

Leading investors in the app include former cricketer Javagal Srinath, Book My Show founder Ashish Hemrajani, Udan co-founder Sujit Kumar, Flipkart CEO Kalyan Krishnamurthy and Jerodha founder Nikhil Kamat.