Gupshup Raises $60m In Equity And Debt, Leaves Unicorn Status Hanging

Gupshup, a business messaging startup that began its travel successful India complete 2 decades agone and became a unicorn 4 years ago, has raised a caller complete $60 cardinal information — but is keeping its caller valuation nether wraps.

In 2021, Gupshup raised two backing rounds wrong 4 months, securing $340 cardinal from salient investors including Tiger Global, Fidelity Management, Think Investments, and Malabar Investments. These rounds — nan startup’s first successful astir a decade — weighted Gupshup astatine $1.4 billion. However, Fidelity, which led nan information pursuing its unicorn milestone, slashed its soul valuation of nan startup astatine slightest 3 times betwixt 2023 and 2024, bringing it down to arsenic debased arsenic $486 million.

The caller backing round, which combines equity and indebtedness financing from Globespan Capital Partners and EvolutionX Debt Capital, intends to thief nan San Francisco-headquartered startup grow its beingness crossed its high-growth markets, including India, nan Middle East, Latin America, and Africa.

The startup would not uncover nan nonstop indebtedness information though its laminitis and CEO Beerud Seth told TechCrunch that nan equity portion is “a small much than half.”

In 2004, Gupshup — derived from Indian slang meaning “conversations” — started arsenic a level to thief businesses link pinch their customers done matter messages. It gained fame arsenic matter messages were not free astatine nan time, and group were seeking ways to nonstop messages to their friends and organization groups. However, arsenic connection shifted from short messaging work (SMS) to WhatsApp and Rich Communication Services (RCS), nan startup moved to these avenues pinch its chatbot services. Now, arsenic AI has go a catchall term, and AI agents — package that tin execute circumstantial tasks connected behalf of users — person emerged everywhere, Gupshup has started enabling businesses to deploy agents.

“There’s a batch of request coming from enterprises. Everybody needs to build these AI agents, which activity done messaging for illustration RCS and WhatsApp aliases done voice. So, building retired these agents, there’s immense demand, and we request to support it,” Seth said.

Globally, AI agents are gaining traction, pinch startups building them drafting beardown investor interest. Tech giants for illustration Amazon, Google, and Microsoft are besides exploring really to bring much of these agents to users done their ain platforms. The result: title is heating up.

Gupshup does not position nan rising title arsenic a threat. Seth pointed to nan startup’s important instal guidelines — which exceeds 50,000 customers crossed much than 100 countries — and its way grounds of merchandise innovation, driven by years of acquisition successful business messaging, strategical acquisitions, and soul R&D.

“Businesses cannot usage elemental instauration models disconnected nan support and conscionable put them successful beforehand of customers. They request a batch of customization to beryllium done, and that’s wherever Gupshup comes in. That’s what we provide,” he noted.

Since its past information successful July 2021, nan startup “tripled” its gross and grew its profitability, Sheth said. However, it is unclear whether that resulted successful an accrued valuation, as, he said, this latest information was not priced.

“As a founder, you attraction connected value, and nan valuation will follow,” Seth said erstwhile asked whether he still considers nan startup a unicorn. “We run ourselves for illustration we are going to beryllium a large company.”

Alongside expanding geographically, nan startup intends to utilize its caller backing to heighten its products, which are utilized successful industries including automotive, banking, e-commerce, fintech, media, payments, retail, and travel. Its products besides see click-to-chat ads, an AI run copilot, supplier assist, and run manager.

Gupshup claims to powerfulness complete 120 cardinal messages annually for thousands of enterprises. Looking ahead, nan startup sees an IPO arsenic its adjacent awesome milestone.

“We’re talking to each our advisors, lawyers, bankers, accountants, and truthful on, to fig this out,” Seth said.

The startup has nary circumstantial timeline for its nationalist listing, though Seth told TechCrunch that it could hap successful 18–24 months.

Gupshup is exploring whether it should database connected Indian banal exchanges — a move that makes strategical sense, arsenic nan startup views India, wherever WhatsApp dominates, arsenic a much favorable market. Among nan reasons: it’s easier to pass its communicative to section unit investors, who are much acquainted pinch WhatsApp and understand really Gupshup’s products, including its AI agents, run wrong nan platform. However, since Gupshup is domiciled successful nan U.S., a flip to India would trigger taxation liabilities, which could require further funding.

The IPO “is nan 1 point that we don’t power entirely. The almanac depends arsenic overmuch connected outer factors arsenic it does connected nan company,” Seth said.