Business messaging pioneer Gupshup has secured a new $60 million round of equity and debt funding, signalling its next growth phase while leaving its current valuation undisclosed.
Founded in 2004 by Beerud Sheth, Gupshup transformed from a popular text messaging platform in India into a global provider of enterprise messaging tools, now used across more than 100 countries. In 2021, the company raised two major rounds totalling $340 million — its first capital raise in nearly a decade — achieving a unicorn valuation of $1.4 billion with backing from heavyweight investors including Tiger Global, Fidelity Management, Think Investments, and Malabar Investments.
But recent years have brought headwinds: Fidelity internally adjusted Gupshup’s valuation down multiple times between 2023 and 2024, reportedly dropping it to as low as $486 million. Against that backdrop, this new $60 million round — backed by Globespan Capital Partners and EvolutionX Debt Capital — is aimed at expanding Gupshup’s footprint in fast-growing regions like India, the Middle East, Latin America, and Africa.
The funding split was not fully disclosed, though Sheth noted the equity portion was “a little more than half.”
Pivot to AI agents
Gupshup’s evolution reflects wider shifts in digital communication. Originally built to help users send affordable text messages when SMS fees were high, the company pivoted as customers moved to richer channels like WhatsApp and RCS (Rich Communication Services). Today, it’s going further: enabling enterprises to deploy AI agents that can automate conversations, campaigns, and customer support across messaging channels and voice.
“There’s a lot of demand coming from enterprises,” Sheth said. “Everyone wants AI agents that work on WhatsApp, RCS, or voice. Building those agents at scale is where we come in.”
This shift positions Gupshup alongside global tech giants like Amazon, Google, and Microsoft, who are also building AI-driven conversational tools. Yet Sheth says Gupshup’s edge lies in its deep domain expertise and flexibility to customise solutions for enterprise clients.
“Off-the-shelf AI models aren’t enough,” he explained. “Businesses need tailored AI agents — that’s what Gupshup builds, powered by our experience and R&D.”
Scale and product expansion
Today, Gupshup serves over 50,000 businesses worldwide, powering more than 120 billion messages annually across industries like automotive, banking, e-commerce, fintech, retail, media, and travel. Its product suite includes AI-powered click-to-chat ads, agent assist, campaign managers, and campaign copilots.
Since its last round in 2021, Gupshup says it has tripled its revenue and become more profitable — though this round was not priced, making it unclear whether the unicorn label still fits. “As a founder, you focus on value, and valuation will follow,” Sheth said.
IPO ambitions on the horizon
Beyond new funding, the company is eyeing an IPO within 18–24 months, depending on market conditions. Gupshup is considering listing in India, where its story aligns closely with platforms like WhatsApp that dominate local messaging, making it easier to explain its business model to retail investors.
Yet a move from its U.S. headquarters to India could trigger tax implications and require fresh funding. “The IPO is the one thing we don’t fully control,” Sheth noted. “External market factors matter as much as what we do internally.”
In the meantime, the company plans to keep pushing deeper into AI, expand geographically, and help enterprises deliver smarter, automated customer engagement at scale.
Whether Gupshup remains a unicorn or not, it’s betting on one truth: in the next wave of digital messaging, AI agents and customisation will define who leads and who lags.