Gupshup, a prominent business messaging platform, has experienced a decline in its valuation following a reduction in the value of its stake by Fidelity, one of its significant investors. This latest adjustment results in a revised valuation of $486 million for Gupshup.
Highlights
Investment Background
In mid-2021, Fidelity made an investment of $16.2 million in Gupshup through its Blue Chip Growth Fund, part of a funding round that previously valued the startup at $1.4 billion. Since that time, the asset management firm has been consistently marking down the value of its shares in Gupshup.
Recent Valuation Adjustments
Recently, Fidelity announced a further reduction of its estimated stake value in Gupshup by 7.7% last month. This decline results in a total decrease of over 65% in the worth of Fidelity’s holding since its initial investment in 2021. As of November, the valuation of Fidelity’s stake in Gupshup stood at $5.62 million, a decrease from $6.09 million in October.
Gupshup’s Funding and Operations
Founded in 2004 by Beerud Sheth, Gupshup is a cloud-based conversational messaging platform designed to help businesses connect with and engage their customers. In 2021, the company raised $340 million from investors such as Tiger Global, Think Investments, and Malabar Investments. Gupshup currently serves over 45,000 brands worldwide and processes an impressive 10 billion messages monthly across more than 60 countries.
Impact of the Valuation Reduction
This substantial drop in valuation indicates the hurdles Gupshup may be encountering in sustaining its earlier growth momentum. The company’s valuation has been decreasing, with Fidelity previously valuing Gupshup at $700 million last year, now adjusting it to $486 million.