Gupshup Bags $60 Mn In Fresh Funding

Gupshup Bags $60 Mn From Globespan Capital Partners & EvolutionX Debt Capital

SUMMARY

Gupshup has raised fresh funds in a mix of equity and debt funding from Globespan Capital Partners and EvolutionX Debt Capital

The proceeds will be deployed to boost the company’s sales, product innovation and further deepen its presence in India, the Middle East, Latin America and Africa

The conversational AI unicorn helps companies to automate their interaction with clients and customers via its AI agents

Conversational AI unicorn Gupshup has raised $60 Mn (about INR 500 Cr) in a mix of equity and debt funding from Globespan Capital Partners and EvolutionX Debt Capital.

The fresh fundraise will help Gupshup to strengthen its conversational AI and messaging platform and also foster its expansion plans in emerging markets. Additionally, the proceeds will be deployed to boost the company’s sales, product innovation and further deepen its presence in India, the Middle East, Latin America and Africa.

Gupshup has raised fresh funds two months after laying off 200 employees.

The San Francisco and Mumbai-based startup started as an SMS platform back in 2004 by Beerud Sheth. Eventually, it also launched messaging services on platforms like Instagram and Whatsapp, but in 2024 it pivoted to become a conversational AI platform, offering its services to enterprises.

The startup helps companies to automate their interaction with clients and customers via its AI agents. It also claims to have launched its own large language model designed and developed to serve enterprises in 2023.

The startup has raised more than $480 Mn in funding till date and last raised $240 Mn in 2021 led by Tiger Global which valued it at $1.4 Bn.

On the financial front, the startup’s consolidated revenue grew 55% YoY in FY23 to reach $300 Mn, and the company is on track for 2X growth in FY24.

The startup is also eyeing a public listing amid a positive response from the public market. In an interview with Inc42 in February, Sheth is figuring out the legal, tax and regulatory issues to redomicile to India. Currently, the startup has not set any timeline for its public issue.

The funding also comes at a time when the Centre is pushing its AI dreams powered with IndiaAI mission which has an outlay of INR 10,000 Cr. Besides, Karnataka is also planning to unveil its own AI mission to boost its AI dreams at a state level.

Gupshup is locking horns with the likes of Obeserve AI, Yellow.ai and a new entrant NimbleEdge to grab its share in the growing GenAI market which is set to become a $17 Bn opportunity by 2030.