Gupshup raises $60M in equity and debt, leaves unicorn status hanging

Gupshup, a enterprise messaging startup that started its journey in India over twenty years in the past and became a unicorn 4 years in the past, has raised a brand new over $60 million spherical — however is protecting its new valuation underneath wraps.

In 2021, Gupshup raised two funding rounds inside 4 months, securing $340 million from outstanding traders together with Tiger World, Constancy Administration, Assume Investments, and Malabar Investments. These rounds — the startup’s first in roughly a decade — valued Gupshup at $1.4 billion. Nevertheless, Constancy, which led the spherical following its unicorn milestone, slashed its internal valuation of the startup at the least thrice between 2023 and 2024, bringing it down to as low as $486 million.

The brand new funding spherical, which mixes fairness and debt financing from Globespan Capital Companions and EvolutionX Debt Capital, goals to assist the San Francisco-headquartered startup broaden its presence throughout its high-growth markets, together with India, the Center East, Latin America, and Africa.

The startup wouldn’t reveal the precise debt portion though its founder and CEO Beerud Seth advised TechCrunch that the fairness half is “somewhat greater than half.”

In 2004, Gupshup — derived from Indian slang which means “conversations” — began as a platform to assist companies join with their clients by textual content messages. It gained recognition as textual content messages weren’t free on the time, and folks had been in search of methods to ship messages to their pals and group teams. Nevertheless, as communication shifted from brief messaging service (SMS) to WhatsApp and Wealthy Communication Companies (RCS), the startup moved to those avenues with its chatbot companies. Now, as AI has change into a catchall time period, and AI brokers — software program that may carry out particular duties on behalf of customers — have emerged in all places, Gupshup has began enabling companies to deploy brokers.

“There’s a whole lot of demand coming from enterprises. All people must construct these AI brokers, which work by messaging like RCS and WhatsApp or by voice. So, constructing out these brokers, there’s big demand, and we have to assist it,” Seth stated.

Globally, AI brokers are gaining traction, with startups constructing them drawing robust investor curiosity. Tech giants like Amazon, Google, and Microsoft are additionally exploring methods to carry extra of those brokers to customers by their very own platforms. The outcome: competitors is heating up.

Gupshup doesn’t view the rising competitors as a menace. Seth pointed to the startup’s substantial set up base — which exceeds 50,000 clients throughout greater than 100 nations — and its monitor document of product innovation, pushed by years of expertise in enterprise messaging, strategic acquisitions, and inner R&D.

“Companies can’t use easy basis fashions off the shelf and simply put them in entrance of shoppers. They want a whole lot of customization to be achieved, and that’s the place Gupshup is available in. That’s what we offer,” he famous.

Since its final spherical in July 2021, the startup “tripled” its income and grew its profitability, Sheth stated. Nevertheless, it’s unclear whether or not that resulted in an elevated valuation, as, he stated, this newest spherical was not priced.

“As a founder, you give attention to worth, and the valuation will observe,” Seth stated when requested whether or not he nonetheless considers the startup a unicorn. “We function ourselves like we’re going to be an enormous firm.”

Alongside increasing geographically, the startup goals to make the most of its contemporary funding to boost its merchandise, that are utilized in industries together with automotive, banking, e-commerce, fintech, media, funds, retail, and journey. Its merchandise additionally embody click-to-chat advertisements, an AI marketing campaign copilot, agent help, and marketing campaign supervisor.

Gupshup claims to energy over 120 billion messages yearly for 1000’s of enterprises. Trying forward, the startup sees an IPO as its subsequent main milestone.

“We’re speaking to all our advisors, legal professionals, bankers, accountants, and so forth, to determine this out,” Seth stated.

The startup has no particular timeline for its public itemizing, though Seth advised TechCrunch that it may occur in 18–24 months.

Gupshup is exploring whether or not it ought to listing on Indian inventory exchanges — a transfer that makes strategic sense, because the startup views India, the place WhatsApp dominates, as a extra favorable market. Among the many causes: it’s simpler to speak its story to native retail traders, who’re extra accustomed to WhatsApp and perceive how Gupshup’s merchandise, together with its AI brokers, function throughout the platform. Nevertheless, since Gupshup is domiciled within the U.S., a flip to India would set off tax liabilities, which may require further funding.

The IPO “is the one factor that we don’t management fully. The calendar relies upon as a lot on exterior elements because it does on the corporate,” Seth stated.