Gupshup, a business messaging startup founded in India, recently announced a new funding round of over $600 million, although its latest valuation remains a mystery. Gupshup became a unicorn in 2019 and raised a total of $340 million in two rounds last year, led by well-known investors such as Tiger Global and Fidelity, increasing its valuation to $1.4 billion. However, Fidelity reduced its internal valuation of Gupshup at least three times between 2023 and 2024, with the lowest reaching $486 million, which undoubtedly cast a shadow on Gupshup's future.
This funding was provided by Globespan Capital Partners and EvolutionX Debt Capital, combining equity and debt financing to help Gupshup expand its business in high-growth markets such as India, the Middle East, Latin America, and Africa. Although Gupshup did not disclose the exact amount of the debt portion, its founder and CEO Beerud Seth said that the equity portion accounted for slightly more than half.
Gupshup was established in 2004 and initially provided text messaging services to help businesses communicate with customers. As the market gradually shifted from SMS to WhatsApp and Rich Communication Services (RCS), Gupshup followed suit and introduced chatbot services. Now, with the increasing popularity of artificial intelligence (AI), Gupshup is beginning to support enterprises in deploying AI agents to provide customers with a more enriched interactive experience.
Seth emphasized that the demand for building AI agents among enterprises is surging. Although competitors continue to emerge, Gupshup remains confident, thanks to its over 50,000 customers and years of experience in the business messaging field. He pointed out that simple basic models are difficult to meet enterprise needs, and customized services are Gupshup's advantage.
Since the last funding round, Gupshup's revenue has "tripled" and it has become profitable. However, since this funding was not priced, Gupshup's latest valuation remains a mystery. Seth said they will focus on creating value, and the valuation will naturally follow.
Additionally, Gupshup plans to further enhance its products using the new funding, targeting multiple industries including automotive, banking, e-commerce, fintech, media, payments, retail, and tourism. Its product portfolio includes click chat ad, AI event assistant, agent support, and event management tools.
Looking ahead, Gupshup views an initial public offering (IPO) as the next important milestone. Although there is no clear timetable, Seth revealed that the IPO may take place within 18 to 24 months, and it is considering listing on the Indian stock market to better reach local investors. However, since Gupshup is headquartered in the United States, shifting to an Indian listing may raise tax issues, meaning the company still needs additional financial support.