Tiger Global-backed messaging unicorn Gupshup bags $240m follow-on funding

Gupshup, a US-headquartered messaging service, has raised US$240 million in follow-on funding from a group of investors, including Fidelity Management and Research Company, Tiger Global, Think Investments, and Malabar Investments.

Harbor Spring Capital, former WhatsApp global business head Neeraj Arora, and White Oak were among the other participants in the round.

The Gupshup team / Picture credit: Gupshup

Gupshup, which is eyeing an initial public offering sometime next year, will use the fresh investment for a secondary purchase of shares from current and former employees as well as prior investors. The unicorn also said it would continue to invest in product innovation and expand its go-to-market initiatives in mobile-first economies around the world.

The messaging firm is also exploring mergers and acquisitions to expand its business opportunities.

Gupshup helps businesses and developers build messaging platforms for their apps. The tech firm, which also provides chatbot services, competes with Twilio, Sinch, and other players in the enterprise messaging space.

The follow-on fundraise comes close on the heels of a US$100 million round led by Tiger Global in April, which catapulted Gupshup into the unicorn club with a valuation of US$1.4 billion. The valuation remains unchanged after the follow-on round, as the company will use a major chunk of the funding to buy back shares.

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With operations in India, Southeast Asia, Latin America, West Asia, Eastern Europe, Africa, and the United States, Gupshup’s platform handles over 6 billion messages per month. The company ended 2020 with an annual revenue run rate of US$150 million.

“Conversations represent the new digital storefront for businesses. Virtually every business will need to build them. We are transforming digital commerce around the world with conversational messaging,” said Beerud Sheth, co-founder and CEO of Gupshup.

Some of the company’s clients include Twitter, Amazon, Facebook, Google, Verizon, Citibank, and McDonald’s.