Gupshup raises $60M in fairness and debt, leaves unicorn standing hanging

Gupshup, a enterprise messaging startup that started its journey in India over 20 years in the past and have become a unicorn 4 years in the past, has raised a brand new over $60 million spherical — however is conserving its new valuation beneath wraps.

In 2021, Gupshup raised two funding rounds inside 4 months, securing $340 million from distinguished buyers 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. Nonetheless, Constancy, which led the spherical following its unicorn milestone, slashed its inside valuation of the startup at the very least thrice between 2023 and 2024, bringing it right down to as little 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 develop 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 “slightly greater than half.”

In 2004, Gupshup — derived from Indian slang that means “conversations” — began as a platform to assist companies join with their prospects by means of textual content messages. It gained recognition as textual content messages weren’t free on the time, and folks had been looking for methods to ship messages to their associates and neighborhood teams. Nonetheless, as communication shifted from brief messaging service (SMS) to WhatsApp and Wealthy Communication Companies (RCS), the startup moved to those avenues with its chatbot providers. Now, as AI has turn into a catchall time period, and AI brokers — software program that may carry out particular duties on behalf of customers — have emerged all over the place, 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 means of messaging like RCS and WhatsApp or by means of voice. So, constructing out these brokers, there’s large demand, and we have to help it,” Seth mentioned.

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

Gupshup doesn’t view the rising competitors as a risk. Seth pointed to the startup’s substantial set up base — which exceeds 50,000 prospects throughout greater than 100 international locations — and its monitor report of product innovation, pushed by years of expertise in enterprise messaging, strategic acquisitions, and inside 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 completed, 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 mentioned. Nonetheless, it’s unclear whether or not that resulted in an elevated valuation, as, he mentioned, this newest spherical was not priced.

“As a founder, you give attention to worth, and the valuation will comply with,” Seth mentioned 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 recent 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 adverts, 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. Wanting forward, the startup sees an IPO as its subsequent main milestone.

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

The startup has no particular timeline for its public itemizing, though Seth advised TechCrunch that it might 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 buyers, who’re extra accustomed to WhatsApp and perceive how Gupshup’s merchandise, together with its AI brokers, function inside the platform. Nonetheless, since Gupshup is domiciled within the U.S., a flip to India would set off tax liabilities, which might require extra funding.

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