MoEngage Secures Additional $180 Million to Propel AI-Driven Customer Engagement and Global Expansion
In a remarkable display of investor confidence, MoEngage, a leading customer engagement platform, has secured an additional $180 million in a Series F follow-on funding round. This substantial investment comes just weeks after the company raised $100 million, underscoring the rapid growth and potential of the Indian startup.
Funding Breakdown and Investor Participation
The latest funding round comprises approximately $123 million in secondary transactions, including a $15 million employee tender that provided liquidity to 259 current and former employees. The remaining $57 million was raised as primary capital to fuel the company’s expansion and innovation initiatives. The round was led by ChrysCapital and Dragon Funds, with participation from Schroders Capital and existing investors TR Capital and B Capital. Early backers, including Eight Roads Ventures, Helion Venture Partners, Z47, and Ventureast, sold shares in the secondary transactions.
Valuation and Revenue Trajectory
This infusion of capital values MoEngage at well over $900 million post-money. The company is on track to achieve $100 million in annualized recurring revenue this year, reflecting its robust growth and market adoption.
Strategic Utilization of Funds
MoEngage plans to leverage the fresh capital to further invest in its Merlin AI suite, enhancing decision-making and efficiency for marketing teams through advanced AI agents. The company is also expanding its offerings to product and engineering teams by integrating analytics and transactional messaging tools, aiming to increase average contract values and broaden its addressable market.
Global Expansion and Acquisition Strategy
With a significant portion of its revenue already derived from North America (over 30%) and Europe and the Middle East (about 25%), MoEngage intends to deepen its presence in these regions. The company is actively pursuing strategic acquisitions, particularly in the U.S. and Europe, targeting software companies that complement its customer engagement platform or accelerate its expansion. Additionally, MoEngage is seeking to acquire small AI teams to bolster its intelligence-led offerings.
Company Overview and Growth Milestones
Founded in 2014 by Raviteja Dodda and Yashwanth Kumar, MoEngage provides AI-powered analytics and customer engagement tools to enterprises, enabling personalized communication across mobile, email, web, and other channels. The platform serves over 1,300 global brands, including Nestlé, Airtel, and Flipkart, and reaches over two billion consumers each month.
In June 2022, MoEngage raised $77 million in a Series E funding round led by Goldman Sachs Asset Management and B Capital, marking Goldman Sachs’ first investment in an Indian SaaS company. The company has consistently demonstrated impressive growth, with its annualized recurring revenue growing over 120% in the last 12 months and onboarding 350 new customers, including enterprises like Domino’s Pizza, CIMB Bank, and IHH Healthcare.
Industry Context and Future Outlook
The global SaaS market is experiencing rapid growth, with the Indian SaaS market estimated to grow at a compound annual growth rate of approximately 33% over the next four years. MoEngage’s recent funding rounds and strategic initiatives position it well to capitalize on this trend, offering advanced AI-driven customer engagement solutions to a growing client base.
As MoEngage continues to innovate and expand, it remains committed to empowering brands with insights-led customer engagement tools, driving personalized experiences, and fostering long-term customer relationships.
