Exclusive | ‘If a business is growing, valuation will follow,’ says Beerud Sheth, CEO at Gupshup

Gupshup’s India business saw declining revenue and profit in FY25. What led to the degrowth?

We are a global business, so what matters to me and the board is our performance at a consolidated level. We operate in over 100 countries, and India accounts for less than two-thirds of the overall business, which is more than Rs 3,000 crore. So, the numbers may be accurate, but they don’t capture the full global picture.

How has been your growth trajectory in the last few years? 

We raised significant capital in 2021, about $100 million at a unicorn valuation, and deployed that towards acquisitions and R&D. During that phase, we traded off some profitability to drive strong revenue growth Over the past year, however, we’ve shifted gears. Our focus is now firmly on profitability.

Also, it’s important to note that FY25 numbers are already somewhat dated at this point. Our business has changed substantially and dramatically since then. At a global level, we’re now around a $350 million business and are profitable.

Fidelity has marked down Gupshup’s valuation by nearly 80% from its 2021 entry level. How do you interpret that?

Honestly, we don’t have visibility into how those valuations are determined. With private companies, there is very limited information available, so people tend to take a more conservative view. As a private company, valuation only matters during transactions, when we open up our books, and have the opportunity to present our perspective.

What we focus on is building value. If the business is strong and growing, valuation will follow when it’s relevant.

How has AI contributed to your revenues so far?

Today, about 25-30% of our revenue comes from AI-related offerings. We expect that to grow to over 50%, and eventually close to 100%. In the future, almost every business-to-consumer interaction will be AI-powered. There may be edge cases like OTPs, but most interactions such as support, sales, and engagement will involve AI.

Are the current geopolitical uncertainties impacting customer spending?

Interestingly, such environments actually increase demand for solutions like ours. When businesses face pressure, they look for efficiency, cost reduction, and better ROI. AI helps with all of that. So while some sectors may slow down, solutions that improve efficiency tend to grow.

Which markets are performing well for you globally?

LATAM is very strong, countries like Brazil and Mexico have high conversational engagement. The Middle East has been good, though growth has slowed recently. India is a mixed market, some companies are very advanced, while others lag in adoption.

We’re also excited about the US and Europe, who have historically been more web-centric, but AI is now driving a shift toward conversational engagement.

You’ve just launched a new autonomous AI agent. What exactly does it do, and how is it different from your existing offerings?

What we’ve built is what we call a ‘Superagent’, which is an orchestration layer for businesses. Today, if a company wants to run customer engagement across WhatsApp, RCS, voice, campaigns, analytics, it’s very complex. The new autonomous AI agent simplifies all of that.

It’s like having a smart executive assistant that can set up campaigns, manage journeys, analyze performance, and continuously optimize outcomes. It’s built on top of our existing infrastructure and domain expertise, so it can actually execute tasks, not just answer questions.

Are enterprises actively looking for such AI tools today?

Interestingly, no one was asking for AI until they saw what was possible. Once they see it, there’s no going back. Now, when businesses see how much complexity and cost this can eliminate, while improving conversions and customer experience, they absolutely want it.