AI-driven B2B messaging platform Gupshup has raised $60 million (about ₹518 crore) in a new funding round, comprising a mix of equity and debt financing, as it gears up for a public market debut in the next 12 to 24 months.
The new round saw participation from investors including Globespan Capital Partners and EvolutionX Debt Capital, the latter of which has joined Gupshup’s cap table for the first time.
The funds will be split equally between working capital and growth initiatives. As a B2B company, Gupshup often sees a lag between signing on customers and receiving payments for services rendered—sometimes with a delay of a few months—making working capital crucial.
“Growth capital helps us move fast when we spot an opportunity. Even if returns take a quarter or two, it’s worth it,” said Beerud Sheth, founder and CEO of Gupshup, in an interview with Mint.
IPO in the works
The company plans to file for an initial public offering within the next 1–2 years and is already in talks with bankers, lawyers, and accountants. It has also strengthened governance structures, adding three independent directors to its board, including Lorrie Norrington last year.
The company is currently domiciled in the US with an India entity. Sheth sees India as an attractive proposition and is evaluating a shift back to the country.
“We have substantial revenues in India and a lot of customers. We’re a well known brand here and a lot of investors here understand how WhatsApp works. Therefore, it could be an attractive listing. We’re optimising for investor understanding,” said Sheth.
India currently accounts for about 70% of Gupshup’s revenue, with the rest coming from markets like the Middle East, Brazil, Mexico, and Southeast Asia.
Valuation resets
In 2021, Gupshup raised $340 million from the likes of Tiger Global, Fidelity, Malabar Investments, and others, pushing its valuation past $1 billion. The company used those funds to pursue acquisitions and ramp up R&D between 2021 and 2022.
It acquired five companies between September 2021 and June 2022 including Dotgo, a communications-platform-as-a-service and customer engagement platform; AskSid, an AI-based conversational platform; and Active.ai, a provider of omnichannel conversational engagement solutions.
However, its worth pointing out that valuations have come off their peaks for several startups since 2021-22, and Gupshup is no different. Fidelity, which invested $16.2 million during the unicorn valuation round has slashed the value of its own stake by over 65% since it made the investment.
According to the asset management company, Gupshup is now worth $486 million, as per its disclosure in December 2024, TechCrunch reported. Meanwhile, Tracxn data shows that as of August 2024, the company is valued at $500 million.
Asked whether the latest round reflected an updated valuation, Sheth said, “I think there’s no valuation sort of implied by this round. Our revenues have more than tripled from our last funding round and our profitability has grown substantially. When you do a priced equity round, then valuations are different.”
Gupshup’s India entity revenue from operations in FY23 stood at ₹1,618.6 crore, a 42% increase over the previous fiscal, according to Tracxn data. Profit and Ebitda also went up to ₹49.2 crore and ₹92.9 crore, a 23% and 31% increase respectively.