Investors Inject $180 Million into MoEngage, an Emerging Indian Customer Engagement Platform
MoEngage, a prominent customer engagement platform utilized by brands in 75 countries, has successfully secured an additional $180 million in a Series F funding round, just over a month after raising $100 million. This latest investment primarily serves to provide liquidity to investors and employees through secondary transactions, with about $123 million allocated for this purpose.
Key funding details reveal that $15 million was set aside for an employee tender, benefitting 259 current and former employees. The remainder, $57 million, represents new capital intended to fuel business growth. Leading this round were ChrysCapital and Dragon Funds, with participation from Schroders Capital and existing backers TR Capital and B Capital. Noteworthy early investors like Eight Roads Ventures and Helion Venture Partners also sold shares during the secondary transactions.
Post-funding, MoEngage’s valuation surpasses $900 million, although the startup has not disclosed specific revenue figures. Industry sources indicate that it is on track to achieve an annualized recurring revenue of approximately $100 million this year.
According to Raviteja Dodda, co-founder and CEO, the new resources will enhance MoEngage’s Merlin AI suite and expand the use of AI agents to streamline decision-making and efficiency for marketing teams. The startup aims to integrate its analytics and transactional messaging tools into more cohesive offerings, ultimately driving up average contract values and expanding its market footprint.
Dodda emphasized the wide-ranging relevance of customer engagement, stating, “It’s not just about marketing teams; product and engineering teams also need to interpret customer behaviors and data effectively.”
In addition, MoEngage plans to utilize part of the fresh capital to pursue strategic acquisitions in the U.S. and Europe, focusing on software companies that align with its customer engagement objectives or could facilitate its market expansion. The startup is particularly interested in acquiring small AI teams to bolster its existing offerings.
Founded 11 years ago, MoEngage operates out of Bengaluru and San Francisco, deriving over 30% of its revenue from North America, around 25% from Europe and the Middle East, and the remaining 45% from India and Southeast Asia.
This funding round’s secondary-heavy structure reflects MoEngage’s advanced positioning in the market, allowing initial investors and employees to liquidate their holdings without pressuring the company into a premature public listing. This strategy allows for greater flexibility in business decision-making, free from investor exit constraints.
Dodda noted, “This provides us the opportunity to avoid any urgency regarding an IPO,” while still setting sights on going public in the coming years, contingent on market conditions and other variables.
Looking ahead, MoEngage aims to achieve positive earnings before interest, taxes, depreciation, and amortization (EBITDA) within this quarter, while targeting a compounded annual growth rate of approximately 35% over the next three years.
MoEngage’s innovative tools have already proven beneficial for clients like Zeta, a fintech firm, which cites improved customer journey metrics such as onboarding and activation, bolstered by MoEngage’s specialized analytics and messaging capabilities.
In summary, with a cumulative total of about $307 million raised to date, MoEngage is poised to solidify its position as a leader in the customer engagement sector.
