Messaging services company Gupshup raised $240 million as part of its Series F funding round from Tiger Global and Fidelity Management and Research Company, as well as Think Investments and Malabar Investments, in a secondary transaction, as it continues gearing up for a potential IPO next year.
You may remember the waves sent across the industry when the 17-year-old start-up attained the “unicorn” status this April following a primary fundraise of $100 million when the start-up ecosystem was going through a “unicorn spree.” This time, the start-up reached new heights.
Gupshup’s messaging platform is used by over 100,000 businesses and developers today to build their own messaging and conversational experiences to serve users and customers. It also provides chatbot services, competing with the likes of Twilio and Sinch. It operates not only in India and Southeast Asia but also in Latin America, West Asia, Eastern Europe, Africa, and the United States. It handles over 6 million messages per month and had an annual revenue run rate of $150 million last year and registered a year-on-year growth of 60%.
Gupshup said that the proceeds from the funding round would be utilized for acquisitions to fill the gaps in its portfolio and expand it into adjacent spaces. It will also continue to invest in product innovation for digital commerce enablement and expand its go-to-market initiatives in mobile-first economies around the world. It will also be used for a secondary purchase of shares from current and former employees as well as prior investors.
According to Gupshup co-founder and CEO Beerud Sheth, more than 100 employees sold shares to the public market investors in this round. “This funding round was driven by strong investor interest in Gupshup, given the overall growth in the conversational messaging space and the innovation-led market leadership position Gupshup has established,” he said. “Some of the funds from this round will be used for a share buyback from employees and investors that supported the company for nearly 15 years.” He added that having a relationship with public market investors would help them with the IPO.
It is the fintech and lending sectors where Gupshup has grown in recent times, Sheth said. “Conversations represent the new digital storefront for businesses. Virtually every business will need to build them. We are transforming digital commerce around the world with conversational messaging,” he added.
