India B2C messaging start-up Gupshup raises $240m
Gupshup, an India-based messaging services provider, has received $240 million from Fidelity, Think Investments, Malabar Investments, Harbor Spring Capital, Neuberger Berman, and White Oak.
Neeraj Arora, formerly global business head at WhatsApp, also took part in the round. Tiger Global Management did as well, having led a $100 million investment – at a valuation of $1.4 billion – in April. A portion of the new capital will go towards a share buyback from employees and existing investors.
Gupshup facilitates customer engagement through conversational messaging, essentially helping corporate customers execute marketing strategies. Its system powers more than six billion messages a month on behalf of 39,200 brands including Facebook, Twitter, Google, Paytm, Reliance Jio, Flipkart, HSBC, Oyo, and Xiaomi.
The company’s platform provides a single messaging application programming interface (API) that works across over 30 channels, including bot platforms, IP messaging, and other engagement tools such as WhatsApp and SMS. In addition to marketing, Gupshup’s solutions cover customer service, appointment booking, and food and beverage ordering and payment.
Beerud Sheth, the company’s co-founder and CEO, said in a statement that headcount had doubled since the April funding. Further expansion will come through recruitment and M&A.
Notably, Gupshup has added conversational artificial intelligence (AI) specialists to support the creation of intelligent bots and improve on-device messaging experiences. One of the objectives is to enable digital commerce through conversational messaging.
“[It] helps businesses across industries take their customers on 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,” Sheth explained.
Gupshup claims to have been profitable for years, with an annual revenue run rate of approximately $150 million for 2020. Prior to April, it last raised funding in 2011, when Tenaya Capital, Globespan Capital Partners, Helion Ventures and Charles River Ventures put in $10 million. That took the company's total funding – chiefly from Globespan, Helion and Charles River – to $47 million.
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