By Akanksha Rana
(Reuters) – Gupshup on Thursday said it had raised $100 million from investment firm Tiger Global Management, valuing the messaging services provider at $1.4 billion.
The company, which had its last funding round about a decade ago, said it saw greater investor demand than anticipated and would raise additional funds as it looks to scale up its existing product portfolio.
“This funding allows us to scale our product and sales efforts that will make it a more attractive company to public market investors,” Chief Executive Officer Beerud Sheth said, adding that the funding “accelerates” the company’s ability to go public.
The COVID-19 pandemic has forced people and companies to rely heavily on messaging apps and business conferencing tools, with more people now using social media to stay in touch with friends and family.
Gupshup, which has been growing solely based on internal profits, saw a growth of over 80% in volumes from pre-pandemic levels, Sheth said. Gupshup’s annual revenue run rate last year was $150 million.
Founded in 2004 and known for popularizing bulk text messaging, the Silicon Valley-based firm now offers a single messaging platform to companies, including Cisco, Unilever and Walmart’s Flipkart, helping them communicate with their customers.
(Reporting by Akanksha Rana in Bengaluru; Editing by Vinay Dwivedi)
