SaaS-based conversational messaging platform Gupshup is seeing a higher allocation by client spending for experimental digital initiatives and increased spending on conversational channels, according to Beerud Sheth, co-founder and CEO, Gupshup.

He said that the average client spend has grown about 10 per cent over the last year, driven by increased willingness to spend on conversational channels.

“The growing adoption of chatbots and virtual assistants, new-age technologies such as ChatGPT, operational efficiency gains, omnichannel experience enablement and the need to maintain a competitive advantage are some of the other reasons for the increased client spend,” said Sheth.

Founded by Sheth in 2004, Gupshup is a conversational messaging platform that helps companies enhance customer experience through WhatsApp, RCS, Instagram, Voice and other platforms.

To date, the platform has made five acquisitions, which have helped the company to scale its AI capabilities. They also brought deep domain expertise in BFSI and retail — its largest sectors currently.

“Post these acquisitions, we have spent a tremendous amount of effort in integrating all of them and shaping our current platform which has solutions for every stage of the customer journey. Today, our biggest differentiator is the comprehensive platform that we can offer to brands rather than a single solution for solving a part of the problem,” he said.

Expand footprint

Currently, the California-based company has over 45,000 clients globally and nearly 80 per cent of its revenues are from India and the remaining from international clients.

Gupshup is looking to expand its footprint globally. Some of the company’s big-ticket clients internationally include Tokopedia, Loreal, Grupo Carso, Rupa Rupa, Maggi, and Nigeria Emaar among others.

“We’ve seen 2X growth in customers in Latin America, Middle East, APAC and Africa. We plan to close the year with $110 million in ARR on our international business,” said Sheth.

He noted that the company has been growing steadily with more than 40 per cent growth year on year. “Our revenue for this financial year is about $300 million,” he said.

Recently, Gupshup launched a conversation cloud with a suite of tools designed for AI-backed B2C conversations to help clients crystalise customer interaction, acquire a larger user base by leveraging ‘Click to WhatsApp’ and Instagram ads, and maximise open-message rates.

IPO plans

Gupshup, which has been profitable for two successive financial years, has also been in talks to list on the public market for some time.

Talking about fundraising activity, Sheth said, that before any public listing there’s a fundraising round. The company will look for IPO and related activities over the next year.

“Whenever there’s an IPO, sometimes there’s a pre-IPO round round as well. It’s part of the process. We’ll decide at that time what the right thing to do is. But one way or another, we will be looking to do IPO and related activities over the next year or so,” he noted.

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