Messaging service provider Gupshup raises $240 million in its additional funding round on Wednesday. Investors like Tiger Global, Fidelity Management, Think Investments, Malabar Investments, Harbor Spring Capitals, and White Oak participated in Gupshup’s series F funding round.
Earlier this year, the startup raised nearly $100 million. The fresh funding has increased Gupshup’s market valuation to $1.4 billion. The company plans to use the funding to expand its market reach and to develop its business messaging platform further.
Co-founder and CEO of Gupshup, Beerud Sheth, said, “Conversation is becoming a bigger part of doing business, and it has partly been driven by the pandemic. Second, we have always been the leader in this space, but the product innovation we have focused on in the last two to three years has worked in our favor.”
He further mentioned that new investors would provide crucial insights to the company for it to plan its future strategies. The startup is also planning to use a certain amount of funds for a share buyback for its loyal employees and investors.
Gupshup is a San Francisco-based company founded by Dr. Milind R Agarwal, Beerud Sheth, and Rakesh Mathur in 2004. The firm offers a conversational messaging platform to businesses to share short messages privately and publicly.
The platform delivers more than 4 billion messages every day and has sent a total of 150 billion messages till date. Sheth said, “There was still more investor interest, and the company wanted to build relationships with the public market investors. So, having a relationship with them now will help us in doing an IPO later.”
Company officials claim that they have witnessed a 60% increase in growth compared to the previous year. Investors firmly believe that the new funding will help the company’s team to scale up its operations and fill the product gaps in its portfolio.