News on Medial

Fidelity slashes Gupshup’s valuation further to $300 Mn

Entrackr · 2d ago

Medial

Fidelity slashes Gupshup’s valuation further to $300 Mn Gupshup’s implied valuation now stands at around $280–300 million, representing a decline of nearly 80% from its peak of over a billion dollar valuation. US-based asset manager Fidelity Investments has sharply marked down the value of its investment in conversational AI startup Gupshup. According to Fidelity’s latest monthly disclosure, the firm has reduced the fair value of its stake in Gupshup to $3.35 million, down from its original investment of $16.2 million made in 2021. The investment was part of a round that valued the San Francisco-headquartered firm at $1.4 billion. Based on the revised carrying value, Gupshup’s implied valuation now stands at around $280–300 million, representing a decline of nearly 80% from its peak of over a billion dollar valuation. This is not the first time Fidelity has marked down its investment in Gupshup. Over the past two years, the asset manager has consistently revised the startup’s valuation. Earlier disclosures had pegged Gupshup’s valuation at about $876 million in 2023 and around $500 million in 2024. In December 2024, another markdown implied a valuation of nearly $486 million. Fidelity had originally invested in Gupshup through its Blue Chip Growth Fund in mid-2021, during the peak of the funding boom when several SaaS and internet startups commanded premium valuations. Founded in 2004 by Beerud Sheth, Gupshup offers conversational messaging and AI-driven engagement tools for businesses across channels such as SMS, WhatsApp, and other chat platforms. The company serves thousands of enterprises globally and has expanded its capabilities through multiple acquisitions in recent years. Gupshup India’s business alone generated Rs 1,943 crore of revenue in FY25, while the profits for the same stood at Rs 26 crore in the same period. However, its global operations are significant, and a complete financial picture can only be assessed by factoring in its international collection. Last year, Gupshup raised $60 million from Globespan Capital Partners and EvolutionX Debt Capital, and set an 18–24 month timeline for an IPO, with plans to reverse flip to India.