Gupshup, AI Business Messaging Startup, Raises Over $60M in New Funding Round

Gupshup, a business messaging startup originating in India over twenty years ago, has secured a new funding round of over $60 million. The exact valuation remains undisclosed. In 2021, Gupshup raised $340 million in two funding rounds within four months, attracting significant investments from Tiger Global, Fidelity Management, Think Investments, and Malabar Investments. This marked the company's first fundraising efforts in about a decade, resulting in a $1.4 billion valuation.

Following its unicorn status, Fidelity, the lead investor in the subsequent round, diminished its internal valuation of Gupshup multiple times between 2023 and 2024, reducing it to as low as $486 million. The recent funding round, comprised of equity and debt financing from Globespan Capital Partners and EvolutionX Debt Capital, aims to facilitate Gupshup's expansion in its high-growth markets, including India, the Middle East, Latin America, and Africa. Although the precise debt portion remains undisclosed, Gupshup's CEO, Beerud Seth, revealed that the equity component exceeds half of the total.

Gupshup, initially established in 2004, emerged as a platform enabling businesses to connect with their customers via text messages. Over time, the company transitioned to providing chatbot services through platforms like WhatsApp and Rich Communication Services (RCS) as SMS usage declined. Presently, Gupshup focuses on facilitating businesses to deploy AI agents to engage with users through messaging and voice platforms. The company has witnessed heightened demand for AI agents, reflecting the global trend of escalating interest in this technology. Despite intensifying competition from tech behemoths like Amazon, Google, and Microsoft, Gupshup remains confident in its substantial customer base exceeding 50,000 clients across 100 countries. The company's strong product innovation, bolstered by years of experience, strategic acquisitions, and internal R&D, sets it apart.

Since its last funding round in July 2021, Gupshup has tripled its revenue and enhanced profitability. Although the impact on its valuation remains ambiguous as the latest round was not priced, the company remains committed to delivering value and operating as a significant player in the industry. With the new funding, Gupshup intends to expand geographically and enhance its product offerings utilized by various industries, including automotive, banking, e-commerce, fintech, media, payments, retail, and travel. The company's services encompass click-to-chat ads, AI campaign copilot, agent assist, and campaign manager, collectively powering over 120 billion messages annually.

Looking ahead, Gupshup envisions an IPO as its next pivotal milestone, with discussions and planning underway. The potential listing may occur in the next 18-24 months, and the company is contemplating listing on Indian stock exchanges given its favorable market conditions. However, this move could entail tax liabilities due to the company's U.S. domicile, potentially necessitating additional funding. Gupshup acknowledges that the IPO timeline is subject to external factors and company considerations. Despite the uncertainties, Gupshup remains optimistic about its future prospects and its positioning as a leading player in the business messaging and AI agent deployment space.