In a remarkable financial performance, Gupshup, the San Francisco-headquartered conversational engagement platform, has reported a substantial surge in its operating revenue for the fiscal year ending on March 31, 2023. The unicorn achieved an operating income of INR 1,618.5 Cr, marking an impressive 43% increase from the previous fiscal year’s INR 1,132.1 Cr.
A Growing Unicorn in Conversational Engagement
Founded in 2004 by Beerud Sheth, Gupshup has established itself as a key player in the conversational engagement space. The platform facilitates over 10 Bn messages every month, enabling businesses to engage with customers effectively. Notable clients include Kotak Mahindra Bank, IndusInd Bank, HDFC Bank, Ola, Zomato, and Flipkart.
Diversified Revenue Streams
Gupshup derives its revenue from various sources, with primary contributions coming from mobile messaging services, mobile advertisement through text messages, and software development charges. The company’s diversified income streams have played a pivotal role in achieving robust financial results.
Global Operations, India Dominance
While operating globally in regions such as the Middle East, Asia-Pacific, Southeast Asia, Latin America, the EU, the US, and Africa, Gupshup significantly relies on India, contributing to 75% of its revenue.
Impressive Profitability and Net Profit Growth
The unicorn, currently valued at $1.4 Bn, reported a net profit increase of 23% to INR 49.2 Cr in FY23, up from INR 39.9 Cr in FY22. This solidifies Gupshup’s position as a financially sound and growing entity in the competitive market.
Breakdown of Expenditure
Gupshup’s total expenditure for the year amounted to INR 1,562 Cr, representing a 44% increase from the previous fiscal year. The major expenditure components include:
- Connectivity Cost: As a CPasS-based startup, Gupshup allocated INR 1,078.3 Cr to telecoms (Airtel, Vodafone) and communication providers (WhatsApp, Slack). This constituted 69% of the total expenditure.
- Employee Benefits Cost: The company allocated INR 213.2 Cr towards employee salaries and welfare benefits, witnessing a substantial 93% increase from FY22.
Strategic Moves and Acquisitions
In 2022, Gupshup strategically positioned itself by acquiring OneDirect, Knowlarity, Active.Ai, and AskSid within a span of five months. These acquisitions, coupled with initiatives like UPI payments for feature phone users, showcase the company’s commitment to innovation and market expansion.
Market Competition
Gupshup faces competition from industry players such as Yalochat, Twilio, and Zendesk, showcasing the dynamic nature of the conversational engagement sector.
