Conversational AI startup Gupshup has raised $60 million (about Rs 518 crore) in a mix of equity and debt funding, nearly four years after its last external fundraise in July 2021.
The company stated in a statement on Tuesday that it raised the fresh capital from American venture capital firm Globespan Capital Partners and EvolutionX, the growth-stage debt financing platform set up jointly by DBS and Temasek.
The startup stated the majority of the capital raised in the latest round was in the form of equity, but didn’t disclose the exact debt-equity split.
“Gupshup has turned the vision of Conversational AI into an enterprise-scale reality. We’re proud to support their next phase of growth as they expand across emerging markets,” stated Andy Goldfarb, co-founder and managing partner, Globespan Capital. Globespan had previously backed the company in 2010.
Gupshup stated it will apply the capital to expand its conversational AI and messaging platform, and step up its go-to-market execution across high-growth markets, including India, the Middle East, Latin America, and Africa. The startup is incorporated in the United States and has an entity in India, where the majority of its team operates as well.
The company stated it will deploy the funding to enhance sales velocity, product innovation, and deepen market presence across key verticals globally.
The startup declined to disclose its latest valuation. In 2021, when it raised $240 million and $100 million across two tranches–only four months apart– in its Series F round, the company was valued at $1.4 billion.
However, one of its investors, Fidelity, a Boston-headquartered asset management firm, had marked down the value of its own investment in Gupshup across multiple disclosures in the last few years. According to the most recent such update in December last year, Gupshup was reportedly valued at less than $500 million.
The latest funding comes as the startup prepares to go public in the coming months, aiming for a tentative timeline of 12-24 months. Earlier, it had deferred its plans for an initial public offering in 2022-23 amid a tough macro environment, like many other companies. It is still evaluating whether to list on Indian or American exmodifys.
“We’re at an inflection point where AI agents are transitioning from experimental technology to business-critical infrastructure, leading to extraordinary global demand for our solutions. Businesses recognize that conversational AI is driving enormous competitive advantages through superior customer experiences,” stated Beerud Sheth, founder and chief executive of Gupshup. “This funding positions us to capture that global opportunity.”
Gupshup was founded in 2004 as an SMS network in India, and later pivoted to providing tools to support brands interact with customers across media including voice, SMS, email and WhatsApp among others. Presently, its platform enables businesses to automate complex customer interactions while maintaining personalized, human-like conversations.
The company, with headquarters at San Francisco in California, entered the unicorn club in April 2021, raising primary funding of $100 million from Tiger Global, nearly a decade after its previous fundraise. A few months later, it secured an additional $240 million in its Series F round of funding. The firm is also backed by investors such as Think Investments and Malabar Investments. It went on an acquisition spree post the 2021 fundraise, acquireing five companies including Dotgo, AskSid, OneDirect, Knowlarity, and Active.ai.
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