Gupshup Secures $60M to Expand AI Messaging, Keeps Valuation Private
Gupshup Secures $60M to Expand AI Messaging, Keeps Valuation Private
Gupshup, a long-standing business messaging provider founded in India and now headquartered in San Francisco, has raised over $60 million in a new funding round. The financing, a mix of equity and debt from Globespan Capital Partners and EvolutionX Debt Capital, signals Gupshup’s ambition to broaden its reach across high-growth markets such as India, the Middle East, Latin America, and Africa. However, the company has chosen not to disclose its current valuation, leaving its unicorn status unclear.
Gupshup's Journey: Growth and Shifting Valuations
Founded in 2004, Gupshup initially helped businesses connect with customers through SMS—an essential service in the era before free messaging apps. The company quickly adapted as communication shifted to platforms like WhatsApp and RCS, introducing chatbot and AI-powered agent services.
Gupshup became a unicorn in 2021 after raising $340 million from investors such as Tiger Global and Fidelity Management, reaching a $1.4 billion valuation. However, over the past two years, internal valuations by investors like Fidelity have reportedly dropped by more than 65%, with the most recent estimate as low as $486 million. The specifics of the current funding round, including the exact equity/debt split, remain undisclosed, though CEO Beerud Sheth confirmed the equity portion is slightly more than half.
Riding the Wave of AI Agents
The latest funding aims to fuel Gupshup’s expansion and innovation, particularly in the burgeoning field of AI agents. These software agents automate business interactions across messaging channels such as WhatsApp and RCS, and even via voice. Sheth notes, “There’s a lot of demand coming from enterprises. Everybody needs to build these AI agents, which work through messaging like RCS and WhatsApp or through voice. So, building out these agents, there’s huge demand, and we need to support it.”
Globally, AI agents are attracting significant investment. Major tech players like Amazon, Google, and Microsoft are all developing agent platforms, intensifying competition in this space. Despite this, Gupshup remains confident, citing its base of over 50,000 customers in 100+ countries and its history of product innovation and customization for enterprise needs.
Business Performance and Strategic Moves
Since its last funding in July 2021, Gupshup claims to have tripled its revenue and enhanced profitability. Its product suite now spans industries including automotive, banking, e-commerce, fintech, and travel, offering solutions like click-to-chat ads, AI campaign copilots, agent assist, and campaign management tools.
With over 120 billion messages powered annually, Gupshup is preparing for its next milestone: an IPO. While no exact timeline is set, Sheth suggests it could happen within 18–24 months. The company is weighing a potential listing on Indian stock exchanges, which aligns strategically with its strong presence in the Indian market. However, a move from U.S. to Indian domicile could create tax implications and require further funding.
What’s Next for Gupshup?
- Continue expanding in key markets (India, Middle East, Latin America, Africa)
- Enhance AI agent and messaging platform capabilities
- Prepare for a potential IPO, possibly in India
- Support businesses across diverse sectors with tailored messaging solutions
