Gupshup Raises Additional $240 Mn Funding
Conversational messaging platform Gupshup on Wednesday announced it has raised an additional $240 million in follow-on funding from an industry-leading group of investors including Fidelity Management and Research Company LLC, Tiger Global, Think Investments, Malabar Investments, Harbor Spring Capital, certain accounts managed by Neuberger Berman Investment Advisers LLC, White Oak, Neeraj Arora, and others.
This funding round follows the $100 million raise from Tiger Global in April, at a $1.4 billion valuation.
“We see substantial growth in India’s digital economy,” said Shashin Shah, managing principal, Think Investments. Gupshup’s platform is an essential tool for businesses building a digital footprint. We’re excited to partner with Gupshup, given its market-leading position, innovation-led growth and attractive financial profile.”
Gupshup will use this investment to continue executing its vision and for the secondary purchase of shares from current and former employees as well as prior investors.
“We have followed Gupshup’s progress for a long while and believe that they are the most evolved customer communications platform In India and increasingly in other emerging markets, with a leadership position in the most attractive and fastest-growing sub-segments of the market,” stated Sumeet Nagar, managing director, Malabar Investments. “We believe that Beerud and team have the unique opportunity to expand the addressable market on the back of new offerings and scale the business up significantly, which is a perfect recipe for massive value creation. I have known Beerud for over three decades, and all of us at Malabar are delighted to partner with Gupshup in the next stage of their journey.”
Gupshup continues to invest in product innovation for digital commerce enablement as well as expanding go-to-market initiatives in mobile-first economies around the world. Gupshup is also exploring M&A opportunities to expand its business opportunities. The company earlier announced an expansion in its executive team with leadership hires in corporate development, international business development, sales, customer success, marketing, and IT.
“We believe the digitization of India is in the early stages of transformational growth, powered by critical communications infrastructure,” commented Subir Jajoo, Partner, Harbor Spring Capital. “Gupshup has built a leading platform to enhance business-consumer engagement, and we are pleased to partner with the company as it continues to improve the digital experience through innovation, reliability, and customer service.”
Enabling digital commerce with conversational messaging, helps businesses across industries take their customers on AI-powered conversational journeys on messaging apps, across marketing, commerce, and support workflows. Customers can discover products, pay for them, track delivery, provide feedback and get support while chatting with their favorite brands like they would with friends and family.
“Conversations represent the new digital storefront for businesses - virtually every business will need to build them,” added Beerud Sheth, co-founder, and chief executive officer, Gupshup. “We are transforming digital commerce around the world with conversational messaging. We look forward to partnering with our new investors given their incredible track record of backing category-creating companies. We are also gratified by the opportunity to provide partial liquidity and great returns to early investors and employees that put their faith in Gupshup.”
Gupshup's last funding round was in April 2021. The company has raised $340 million in 2021. Gupshup grew rapidly over the last few years, exiting 2020 with an annual revenue run rate of approximately $150 million.