Gupshup’s FY22 Revenue Crosses INR 1,000 Cr Mark, Net Profit Narrows to INR 40 Cr
- ByStartupStory | March 8, 2023
Gupshup, the enterprisetech unicorn, announced that its total revenue surpassed INR 1,000 Cr in the fiscal year ending March 31, 2022. The San Francisco-based startup recorded a 53% increase in total revenue from INR 747.6 Cr in the previous fiscal year to INR 1,140.7 Cr in FY22. Revenue from operations also rose by 1.5 times from INR 739 Cr in FY21 to INR 1,132 Cr. Gupshup’s primary source of revenue is derived from providing mobile messaging services and mobile advertising through text messages.
Gupshup’s revenue surged by 53% to INR 1,140.7 Cr in FY22, driven by increased awareness about customer engagement during the pandemic. The startup’s revenue from operations also rose 1.5X to INR 1,132 Cr from INR 739 Cr in FY21, primarily due to its mobile messaging and mobile advertising services. However, Gupshup’s net profit decreased by 24% YoY to INR 39.9 Cr, despite the rise in revenue, due to a surge in expenses, particularly for material consumed. The startup’s total expenditure increased by 62% to INR 1,084.2 Cr in FY22 from INR 671 Cr in FY21, with its cost of material consumed increasing by 44% to INR 814.1 Cr.
Gupshup’s employee benefit expenses surged by 218% YoY to INR 110.6 Cr in FY22 from INR 34.8 Cr in FY21, primarily due to a rise in employee headcount. The company’s employee count increased from 311 at the beginning of FY22 to 781 by the end of the fiscal year, as per data available on LinkedIn. Currently, the startup employs more than 800 people. Employee benefit expenses include salaries, provident fund (PF) contributions, gratuity, and other welfare benefits for employees.
Gupshup’s advertising and promotional expenses surged by 186% to INR 50.9 Cr in FY22 from INR 17.8 Cr in FY21, indicating the startup’s push for customer engagement. This translates to INR 22 of operating revenue in FY22 for every INR 1 spent on advertising.
Founded in 2004 by Beerud Sheth, Gupshup is a messaging platform that facilitates customer conversations for businesses, boasting a claim of sending over 7 Bn messages per month. Its clientele includes major players such as Kotak Mahindra Bank, IndusInd Bank, HDFC Bank, Ola, Zomato, and Flipkart.
In July 2021, Gupshup raised $240 Mn in a follow-on funding round, which was used to buy back shares from employees and existing investors. Fidelity Management and Research, Tiger Global, Think Investments, Malabar Investments, and Harbor Spring Capital were among the participants. Gupshup joined the unicorn club in April 2021, after raising $100 Mn in a Series F round led by Tiger Global at a valuation of $1.4 Bn. In the first five months of 2022, the startup acquired four companies, and it competes with Yellow.ai, Skit.ai, and Leena.ai, among others.
Follow Startup Story
Related Posts
