India’s SMSGupShup Raises $12 Million For Twitter-Like Social Network

SMSGupShup, a Twitter-like service in India that is primarily accessed via SMS, has raised $12 million in funding led by Globespan Capital Partners with existing investors Charles River Ventures and Helion Venture Partners participating in the round. The latest funding brings SMSGupShup's total funding to $37 million. Launched in April 2007, SMSGupShup (spawned from Webaroo) serves 26 million users across India. The startup has seen rapid growth in users primarily due to the immense popularity of mobile devices in India. According to the startup, there are 550 million mobile phone users in the country and only 50 million web users. With a 10 to 1 mobile-to-PC ratio and SMS serving as the most popular communications platform, the market is ripe for SMSGupShup to take off. SMSGupShup currently processes over 480 million messages a month and accounts for 5 percent of all texts sent within India. The new funding will be used for expand into other markets such as the Philippines and Indonesia, for product development and to hire new staff in engineering, advertising and marketing.