MoEngage Secures Additional $180M Funding Just Weeks After $100M Investment, Fueling Growth in Indian Startup Scene
MoEngage Secures $180 Million in New Funding, Strengthens Market Position
In an exciting development for the customer engagement realm, MoEngage has successfully completed a Series F follow-on funding round that raised an impressive $180 million. Just a month after securing a substantial $100 million, this latest round predominantly offers liquidity to investors and employees through secondary transactions. It’s a strategic maneuver that not only highlights MoEngage’s growth but also its commitment to enhancing customer relationships.
The Financial Breakdown
This recent funding round included approximately $123 million allocated to secondary transactions, which included a $15 million employee tender designed to provide liquidity for 259 current and former team members. The remaining $57 million was raised as primary capital to fuel business growth. Prominent investors like ChrysCapital and Dragon Funds led the round, with Schroders Capital and existing backers such as TR Capital and B Capital joining in.
Post-Money Valuation
Sources close to the deal reveal that MoEngage is now valued at “well over” $900 million post-money, with indications that the startup could achieve $100 million in annualized recurring revenue by year-end.
Future Plans with Fresh Capital
Raviteja Dodda, co-founder and CEO of MoEngage, has articulated clear intentions for the new capital. The investment will enhance their Merlin AI suite and expand the use of AI agents to optimize decision-making and efficiency, particularly for marketing teams. “Customer engagement transcends marketing—it reaches product and engineering teams,” Dodda emphasizes, noting the essential role that understanding customer behavior plays across departments.
Strategic Acquisitions Ahead
Part of MoEngage’s strategy involves pursuing strategic acquisitions in North America and Europe. The goal is to acquire software companies that can complement their customer engagement capabilities, thus accelerating regional growth. They also aim to target specialized AI teams to enrich their offerings.
MoEngage’s Growth Trajectory
Founded 11 years ago and headquartered in Bengaluru and San Francisco, MoEngage already garners over 30% of its revenue from North America, about 25% from Europe and the Middle East, and the remaining funds from India and Southeast Asia.
Transitioning to an IPO
The structure of this funding round, which leans heavily on secondary transactions, allows early investors and employees to gain liquidity without pressuring the company into a premature public listing. “This flexibility enables us to prioritize business needs over investor exit timelines,” Dodda explains, while expressing that an IPO is still a goal within the next couple of years, contingent on market conditions.
Financial Outlook
MoEngage expects to achieve EBITDA positivity this quarter, with ambitious plans for a compound annual growth rate of about 35% over the next three years.
Customer Success Stories
The efficacy of MoEngage’s analytics and messaging tools has not gone unnoticed. Bhavin Turakhia, co-founder and CEO of fintech firm Zeta, a MoEngage client, reports substantial improvements in onboarding, activation, and cross-selling through key customer journeys enabled by these tools.
Returns for Early Investors
The secondary aspect of this funding round has also allowed early investors to exit effectively. Ventureast, which first invested in MoEngage back in 2018, saw an impressive tenfold return on investment, underscoring the ongoing viability of MoEngage’s business model.
Competitive Advantage
While many global customer engagement companies adapt to structures suited for the U.S. market, MoEngage has maintained a cost structure rooted in India. This strategic decision has empowered the company to compete more effectively in North America without sacrificing growth.
With this latest funding, MoEngage has successfully raised around $307 million in primary funding to date, showcasing a robust trajectory and resilient strategy in the ever-evolving landscape of customer engagement.
As MoEngage moves forward, they continue to redefine the ways brands connect with their customers. For those interested in following their journey or exploring how they can help enhance customer interactions, staying tuned to MoEngage’s developments will undoubtedly prove insightful. Here’s to elevating your engagement game!
