Funding boost for conversational AI business Gupshup, with $60 million in fresh investment capital secured.
Gupshup, a leading Conversational AI startup, has announced that it has raised $60 million in a mix of equity and debt funding. The funding round was led by American venture capital firm Globespan Capital Partners and EvolutionX, a growth-stage debt financing platform jointly set up by DBS and Temasek.
The company, which is incorporated in the United States and has an entity in India, where the majority of its team operates, sees this funding as its next major milestone to support global expansion and AI-driven product development.
Plans for the Funds
Gupshup plans to use the funds to expand its conversational AI and messaging platform, and increase go-to-market execution in high-growth markets like India, the Middle East, Latin America, and Africa. The company will also deploy the funding to enhance sales velocity, product innovation, and deepen market presence across key verticals globally.
Gupshup's IPO Plans
Gupshup is planning to go public within 18-24 months. According to its founder Beerud Sheth, the company is actively consulting advisors, lawyers, bankers, and accountants to finalize its IPO strategy. Regarding the potential stock exchange, Gupshup is exploring a possible listing on Indian stock exchanges. This would align with its strategic focus on the Indian market—where WhatsApp dominates and retail investors better understand Gupshup's products and services.
However, since the company is currently domiciled in the U.S., a shift of domicile to India to facilitate an IPO there would involve tax implications and might require additional funding.
Gupshup's Growth and Acquisitions
Gupshup was valued at $1.4 billion in 2021 and secured an additional $240 million in its Series F round of funding a few months after the Tiger Global investment. The startup last raised external funds in July 2021.
Post its 2021 fundraise, Gupshup acquired five companies, including Dotgo, AskSid, OneDirect, Knowlarity, and Active.ai. The company is also backed by investors such as Think Investments and Malabar Investments.
Gupshup provides tools for brands to interact with customers across various media, including voice, SMS, email, and WhatsApp. The company had previously deferred its plans for an initial public offering in 2022-23. However, with the recent funding, it seems that Gupshup is now moving forward with its IPO plans.
[1] India's Gupshup is planning to go public within 18-24 months, according to its founder Beerud Sheth
[2] Gupshup explores a possible listing on Indian stock exchanges
[3] Gupshup raises $60 million in funding
[4] Gupshup plans to use the funds to expand its conversational AI and messaging platform
[1] With the recent $60 million funding, Gupshup is planning to use the funds for investing in expanding its conversational AI and messaging platform.
[2] As part of its business growth, Gupshup, a leading tech startup, is considering technology-driven product innovation and is planning to list on Indian stock exchanges within 18-24 months.
