MoEngage, a leading insights-led customer engagement platform, has completed $180 million of follow-on Series F funding round. That hefty investment gives the company a post-money valuation of “well over” 900 million. The funding will help support MoEngage’s continued push to increase their market share and presence. It notably aims for expansion to the U.S. and Europe, where the company intends to focus on making strategic acquisitions.
Based in India, MoEngage provides analytics and messaging tools that empower consumer brands in over 75 countries to optimize customer interactions. Their cutting-edge platform has already done wonders for companies such as Zeta, which is helmed by Bhavin Turakhia. It’s improved their onboarding, activation, and cross-selling across important customer journeys.
Of that $253 million, only about $123 million of those funding commitments are direct investments – the rest are secondary investments. This round includes a $15 million employee ownership tender. It has given liquidity to 259 present and past MoEngage employees, reflecting MoEngage’s deep commitment to its employees. The balance of $57 million was raised as primary capital, meant to drive MoEngage’s business operations and go-to-market strategy.
MoEngage is poised to end this year at almost $100 million in annualized recurring revenue. This rapid growth trajectory is in no small measure due to its aggressive pricing strategy, based on an India-based cost structure. This model has allowed the company to attract sales, sharply scale its production, and maximize its competitive effectiveness.
Raviteja Dodda, CEO of MoEngage, spoke about their enthusiasm over securing recent funding.
“It gives us the opportunity not to have an urgency with regard to going IPO.”
The secondary-heavy nature of this funding round highlights MoEngage’s late-stage status within the space. At their core, the strength of the company’s international presence. More than 30% of its revenue is derived from North America, about 25% from Europe and the Middle East combined. Of the rest, the other 45% of its revenue derives from their South Asian and SE Asian Region.
Dodda highlighted the holistic focus on customer engagement, which he said goes beyond just marketing teams.
“When you look at customer engagement, it is not necessarily focused on marketing teams. There are product and engineering teams, which also focus on how to make sense of customer behavior and data.”
MoEngage’s strategy of expanding its platform through acquisitions comes as it has reached profitability for core operations. With this holistic view of customer engagement, we’re better positioned to drive faster growth throughout our strategic markets. Its strategy has been to be the first mover but to acquire the software companies that would complement its existing capabilities or help it get into new territories.
MoEngage is broadening the scope of its offerings, while refining its core. It is still committed to delivering design excellence and enduring value for its clients in such diverse sectors. This new round of funding will turbocharge our own organic growth. It’ll further cement our place as the world’s leading provider of customer engagement solutions.