Gupshup Takes A Magical Ride As Fidelity Expertly Backslashes Unicorn Club’s Value By A Massive 31.6%

Fidelity Investments, a prominent asset management company headquartered in the United States, has recently reduced the fair value of Gupshup, a leading conversational messaging unicorn, by 31 percent. This valuation adjustment, effective as of March 31, 2023, represents a significant markdown in the fair value of an Indian unicorn, adding to a growing trend among investors.

Gupshup’s fair value reduction by Fidelity Investments highlights the ongoing challenges and fluctuations in the valuation of Indian unicorns in the current investment landscape.

Fidelity Investments, a US-based asset management company, maintains ownership in Gupshup Inc, the parent organization of a cloud-based chat development platform with offices in Mumbai and San Francisco. This affiliation is facilitated through various funds managed by Fidelity, as evidenced by recent filings with the Securities and Exchange Commission (SEC).

Notably, these filings, which include Variable Insurance Products Fund III and Fidelity Central Investments Portfolio LLC, reveal a reduction in the fair value of Gupshup by 31.6 percent. Consequently, the current valuation of the company stands at $957 million, representing a decline from its previous valuation of $1.4 billion.

There has been no decrease in Gupshup’s fair value as reported by Neuberger Berman, an investor in the company, thereby ensuring the absence of any reduction in its valuation.

According to Beerud Sheth, the Co-founder and CEO of Gupshup, the company has consistently sustained impressive growth and profitability following its funding round in 2021. Sheth stated that the valuation of illiquid securities is determined by individual investor funds in accordance with their internal policies, and Gupshup refrains from making any comments regarding these valuations.

Significant downturn

The fair value of the cloud-based chatbot, an Indian unicorn, has witnessed a notable decrease, following a trend seen among other prominent startups in the country. AMCs based in the United States have similarly reduced the fair values of Meesho, Ola, Swiggy, Eruditus, and Byju’s. While Meesho and Eruditus faced mark downs of approximately 9-10 percent, the remaining companies experienced a steep decline in their fair values, ranging between 30 and 50 percent.

It is crucial to emphasize that the modifications made to fair values are usually derived from AMC’s internal evaluation of the broader and specific market conditions. It is essential to understand that these adjustments should not automatically be interpreted as a lasting reduction in the overall valuation of the company.

Established nearly two decades ago by Beerud Sheth, Gupshup has emerged as a leading provider, catering to more than 45,000 enterprises in diverse sectors such as BFSI, e-commerce, retail, travel, edtech, and healthcare.

Gupshup’s comprehensive suite of services encompasses marketing, sales, and customer support automation, enabling businesses to streamline their operations. Its extensive clientele spans across India, Latin America, Europe, Southeast Asia, the Middle East, and the United States, showcasing the global reach and impact of Gupshup’s solutions.

In the recent past, Gupshup introduced an innovative and cutting-edge solution that harnesses the potential of artificial intelligence. This tool, powered by OpenAI’s GPT-3 technology, has revolutionized the development of sophisticated conversational chatbots tailored for enterprises.

The integration of GPT-3 enables Gupshup to create advanced chatbots that offer seamless and natural interactions, enhancing the user experience and delivering exceptional results for businesses. This groundbreaking initiative has marked a significant milestone for Gupshup and has garnered attention for its ability to leverage AI capabilities in transforming the conversational AI landscape.

Unveiling the Financial Landscape
The financials of the company are impressive, as it has successfully secured over $380 million in funding thus far. These funds have been obtained from a diverse group of investors, which includes prominent names such as Tiger Global, White Oak, Malabar Investments, and Helion Venture Partners, among others.

The company’s ability to attract such a significant amount of investment reflects its strong potential and the confidence that investors have placed in its future prospects.

According to a recent report, Gupshup, a profitable unicorn in India, experienced a significant boost in its revenue during FY22 (2021-22), soaring to Rs 1,132 crore, marking a growth of 1.5 times. However, it is worth noting that the company’s profit margin contracted to Rs 39.9 crore during FY22, compared to the previous year’s figure of Rs 52.5 crore. Gupshup’s primary sources of revenue encompass mobile messaging services and advertising, making it a unique player in the industry.

Proofread & Published By Naveenika Chauhan