Gupshup Reports FY25 Revenue Update

Gupshup has surpassed the Rs 2,000 crore revenue milestone, showcasing a remarkable performance in FY24. However, the conversational AI platform experienced a slight reduction in its operational scale for the fiscal year ending March 2025. Alongside this, profits for the company, backed by Tiger Global, dropped by more than 50%.

Financial Overview

According to annual financial reports reviewed by Startup Superb, Gupshup’s India revenue from operations fell by 5.3%, reaching Rs 1,943 crore in FY25, down from Rs 2,051 crore in FY24. These figures solely represent the Indian entity of Gupshup, without accounting for overseas revenue. The overall financial results might differ due to Gupshup’s substantial international presence.

Revenue Streams

Gupshup provides conversational AI solutions for marketing, commerce, and support, serving over 50,000 businesses across 130 countries. It processes more than 120 billion messages each year across multiple platforms such as WhatsApp, voice, web, and mobile. Revenue streams for the firm last fiscal year included mobile messaging services, text-based advertising, and software development, although Gupshup did not disclose the breakdown of these services. Additionally, the company earned non-operating income of Rs 14 crore, bringing total income for the last fiscal year to Rs 1,957 crore.

Expenditure Details

The majority of expenses, which accounted for 65% of the total, were classified as miscellaneous expenses, totalling Rs 1,245 crore in FY25. This category appears to represent fees paid to solution providers. Employee benefit expenses for Gupshup India rose by 10% year-on-year to Rs 312 crore in FY25. Costs for telephone and postage reached Rs 138 crore, while advertising and promotional expenses, alongside legal and professional fees, stood at Rs 41 crore and Rs 47 crore, respectively.

Profitability Metrics

Despite relatively stable overall expenses, the decline in operational scale prompted Gupshup to report a 50% drop in net profits, amounting to Rs 26 crore in FY25, down from Rs 54 crore in FY24. Its Return on Capital Employed (ROCE) and EBITDA margin were recorded at 12.72% and 3.91%, respectively. For each unit of revenue, the company spent Rs 0.99 to generate one rupee in FY25. As of March 2025, Gupshup India reported current assets of Rs 1,590 crore, which included cash and bank balances amounting to Rs 7 crore.

Recent Developments

Gupshup attained unicorn status after securing $100 million from Tiger Global Management in April 2021. The company also received $60 million in July last year from Globespan Capital Partners and EvolutionX Debt Capital. Last year, it sold its proprietary ‘GSPay’ technology stack to PhonePe, facilitating UPI-based payments on feature phones.

With Ravi Dugar stepping in as Chief Financial Officer, Gupshup aims to enhance its financial discipline and efficiency, which may lead to a more stable growth trajectory in the future.