Gupshup, a conversational messaging platform, has reported a significant increase in its revenue and profit for the fiscal year ending March 2023. The company's revenue from operations in India soared by 43% to Rs 1,619 crore, up from Rs 1,132 crore in FY22.
The growth is notable as it does not include revenue from overseas markets, where Gupshup also has a substantial business presence.
What are revenue streams?
The company, backed by Tiger Global, primarily generates revenue through mobile messaging services, advertisement via text messages, and software development charges.
Gupshup claims to deliver over 10 billion messages per month and has over 45,000 brand associations across 60 countries, including regions like Latin America, Southeast Asia, the Middle East, Eastern Europe, Africa, and the United States.
Expenditure and profit increase
Gupshup's total expenditure for FY23 was Rs 1,562 crore, a 44% increase from the previous fiscal year. The major expenses included fees paid to business solution providers and employee benefits, which saw a 92% spike from the previous year.
Despite these increased costs, the company managed a 22.5% increase in profit, reaching Rs 49 crore in FY23, up from Rs 40 crore in FY22.
The company's efficient cost management and significant scale of operations contributed to an impressive Return on Capital Employed (ROCE) and EBITDA margin of 17% and 5%, respectively.
Gupshup has raised over $400 million across multiple rounds from investors like Tiger Global, Fidelity Management and Research, and others. However, it's worth noting that Fidelity marked down the valuation of its own shares in Gupshup last year.
The company has also been active in acquisitions, acquiring companies like OneDirect, Knowlarity, and AI startups Active.Ai and AskSid within five months in 2022. Gupshup competes in the market with other players like Yalochat, Twilio, and Zendesk.
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