Messaging Startup Gupshup Raises $240 Million For Share Buy-Back
NDTV
Gupshup, a Silicon Valley messaging startup with a focus on India, on Wednesday said it raised $240 million from Tiger Global Management and others.
Gupshup, a Silicon Valley messaging startup with a focus on India, on Wednesday said it raised $240 million from Tiger Global Management and others to buy back shares ahead of a possible IPO next year. While venture capital investments are traditionally used for hiring more engineers or expanding sales and marketing, buy-back deals allow investors in a startup to realize their investment before an IPO. A flood of funds at a time when startups stay private for much longer has led to more buy-back deals on the private market, said Ed Zimmerman, a lawyer at Lowenstein Sandler who teaches venture capital at Columbia University's business school, referring to the market in general. Gupshup raised $100 million in April from Tiger Global and was valued at $1.4 billion. Tiger Global has emerged as the biggest funder of venture deals this year.More Related News