Goldman Sachs Leads $100 Million Investment in MoEngage to Accelerate Global Expansion and AI Integration
MoEngage, a customer engagement platform serving consumer brands across 75 countries, has secured $100 million in a Series F funding round led by existing investor Goldman Sachs Alternatives. This round also introduces Indian venture firm A91 Partners as a new investor, bringing MoEngage’s total funding to $250 million.
In today’s digital landscape, consumer brands are intensifying their efforts to capture customer attention through personalized marketing strategies. MoEngage addresses this need by leveraging first-party data to enhance customer engagement. Their Merlin AI suite empowers marketing and product teams to launch campaigns more efficiently and improve targeting precision. CEO Raviteja Dodda emphasized the company’s commitment to helping B2C brands engage more effectively with their customers by utilizing existing data.
Founded 11 years ago, MoEngage initially concentrated on India and Southeast Asia. Over the past four years, the company has expanded into new markets, with North America now accounting for over 30% of its revenue. Europe and the Middle East contribute about 25%, while India and Southeast Asia make up the remaining 45%. The recent investment from Goldman Sachs is expected to further bolster MoEngage’s global presence. Notably, Goldman Sachs co-led the company’s Series E round of $77 million in June 2022.
MoEngage has been investing heavily in generative AI and decisioning AI capabilities over the past two to three years. The Merlin AI suite includes AI agents designed for marketing applications, such as drafting marketing messages, creating multiple campaign variants, and generating natural language text with relevant images. Additionally, decisioning AI tools assist brands in determining optimal messaging strategies, channels, and timing.
Serving over 1,350 consumer brands worldwide, MoEngage’s clientele includes SoundCloud, McAfee, Kayak, Domino’s, Deutsche Telekom, and Travelodge, as well as prominent Indian companies like Swiggy, Flipkart, Ola, Airtel, and Tata. Approximately 60% of the company’s business comes from traditional enterprises, with the remaining 40% from internet-focused firms. The platform also collaborates with over 25 global banks and several large insurers, including JPMorgan Chase, Citibank, and India’s Life Insurance Corporation (LIC).
Many of these brands previously utilized marketing platforms from companies like Adobe, Oracle, and Salesforce. MoEngage has successfully transitioned over 300 of them to its platform, contributing to growth in North America and the EMEA regions. For instance, SoundCloud migrated over 120 million users to MoEngage within 12 weeks, using AI-driven insights to accelerate product launches and enhance retention among paid users.
MoEngage’s platform enables brands to unify customer data from various touchpoints, including offline stores, websites, and mobile apps. This consolidation allows for more effective customer engagement strategies. CEO Raviteja Dodda highlighted the company’s role in helping brands unify customer data across all channels.
The company experienced approximately 40% year-over-year growth last year and aims to maintain a 35% compound annual growth rate over the next three years. MoEngage also anticipates becoming adjusted EBITDA-positive on a quarterly basis by the end of the current fiscal year.
Competitors in the customer engagement platform space include Braze, CleverTap, and legacy marketing clouds by Adobe, Oracle, and Salesforce.
With a workforce of about 800 employees across 15 offices worldwide, MoEngage plans to expand its team, particularly in North America and Europe. The focus will be on scaling customer success, support, sales, and marketing teams to deepen market presence. Additionally, the company intends to build more AI capabilities and hire talent to support these efforts.
Looking ahead, MoEngage aims to become IPO-ready within the next couple of years, with aspirations to build a multi-billion dollar revenue company in its space.
