
Gupshup Reports Rise in AI-Driven Revenue as Enterprises Expand Beyond Traditional Messaging Platforms
Conversational AI Takes Center Stage in India's Business Landscape
India's business sector is witnessing a significant shift as companies increasingly turn to customer notifications that are powered by artificial intelligence (AI), enabling consumers to ask questions, complete transactions, and receive support within the same chat window. This trend is creating a new growth opportunity for conversational AI companies, with Gupshup reporting a rise in the adoption of AI-driven customer engagement products across its enterprise customer base.
The adoption of AI-powered customer engagement products reflects a broader shift in India's conversational AI market, where players such as Yellow.ai, Exotel, Haptik, and Verloop are moving beyond chatbots and messaging tools to build AI agents capable of handling customer support, sales, and business workflows with minimal human intervention. This development comes weeks after Gupshup launched Superagent, an autonomous AI agent designed to manage customer conversations at scale across messaging and voice channels.
Gupshup's push into conversational AI is also evident in its product lineup, which includes Superclaw, a self-hosted version targeted at small and medium enterprises and organizations with stricter privacy requirements. According to Gupshup's founder and CEO, Beerud Sheth, conversational and AI-powered engagement products account for about a quarter of the company's revenue. These products sit on top of Gupshup's messaging infrastructure and enable enterprises to run customer journeys, marketing campaigns, and support interactions through AI-powered workflows.
| Product | Revenue Share |
|---|---|
| Conversational and AI-powered engagement products | 25% |
| Other products | 75% |
Gupshup's expansion into conversational AI has been fueled by significant funding, with the company raising more than $60 million in a mix of equity and debt funding from Globespan Capital Partners and EvolutionX Debt Capital in July 2025. The company handles more than 10 billion messages every month for over 50,000 businesses across more than 100 countries through channels including WhatsApp, RCS, SMS, Telegram, Instagram, and voice.
Gupshup's adoption of AI has also had a significant impact on its internal operations, with AI reducing support response times by 90-95 percent, increasing invoice automation rates to more than 90 percent, and enabling AI voice agents to handle over 90 percent of customer calls. The efficiencies have contributed to margin expansion, with Gupshup's gross margins improving by three to four percentage points over the past year as customers adopted higher-value conversational products. The company generates more than $350 million in annual revenue globally, with around 40 percent of its business coming from markets outside India.
Investor Takeaway
Investors should consider the growing trend of conversational AI adoption in the enterprise sector.
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