SMSGupshup has raised INR 50 Crore led by US-based venture capital firm Tenaya Capital and included existing investors Lloyd George, New Horizons,Charles River Ventures, Helion Ventures and Globespan Capital Partners.
This is the fifth round of funding for SMSGupshup and the current round takes the total funding in the company to ~$47mn. The company claims to have 50 million users, though the majority of revenue comes from its sms bulk service.
As per ET, the money was raised at the valuation of 1,000 Crore (though the company is targeting revenue of INR 100 Crore by March 2012) – i.e. a multiplier of 10!.
At such a high valuation and a total capital base of $47 million, what’s your take on SMSGupshup story? Is this sustainable?