MoEngage’s Meteoric Rise: Investors Pour in Additional $180M After Successful $100M Fundraise

MoEngage Raises $180 Million in Series F Follow-On Transaction

MoEngage, a leading customer engagement platform utilized by consumer brands in 75 countries, has recently announced a significant milestone by securing a $180 million Series F follow-on transaction. This comes just a month after the company raised $100 million in funding, with a major portion of the latest funding allocated towards providing liquidity to investors and employees through secondary transactions.

The latest funding round saw approximately $123 million in secondary funding, including a $15 million employee tender that offered liquidity to 259 current and former employees. The remaining $57 million was raised as primary capital, further fueling the growth of the business. ChrysCapital, Dragon Funds, Schroders Capital, TR Capital, and B Capital led the round, with participation from existing investors. Notably, early backers such as Eight Roads Ventures, Helion Venture Partners, Z47, and Ventureast also participated in the secondary transactions by selling shares.

The valuation of MoEngage post-money was reported to be over $900 million, with the company expected to reach $100 million in annualized recurring revenue this year. MoEngage plans to utilize the fresh capital to enhance its Merlin AI suite, leveraging AI agents to enhance decision-making and efficiency for marketing teams. Co-founder and CEO Raviteja Dodda highlighted the company’s focus on expanding its product and engineering teams, integrating analytics and transactional messaging tools to offer a comprehensive solution that aims to increase average contract values and expand the addressable market.

Dodda emphasized the importance of customer engagement beyond marketing teams, recognizing the role of product and engineering teams in analyzing customer behavior and data. The company intends to explore strategic acquisitions, particularly in the U.S. and Europe, to complement its customer engagement platform and accelerate its growth in these markets. Additionally, MoEngage plans to target small AI teams to enhance its intelligence-led offerings.

With headquarters in Bengaluru and San Francisco, MoEngage already generates more than 30% of its revenue from North America, 25% from Europe and the Middle East, and the remaining 45% from India and Southeast Asia.

The structure of MoEngage’s recent funding round, with a significant focus on secondary transactions, reflects its late-stage positioning, allowing early investors and employees to realize liquidity without immediate pressure for a public listing. This strategic approach provides flexibility for the company to prioritize business goals over investor exit timelines, with the ultimate aim of going public in the next couple of years.

MoEngage anticipates achieving positive earnings before interest, taxes, depreciation, and amortization (EBITDA) this quarter, targeting a compound annual growth rate of approximately 35% over the next three years. The company’s offerings have been instrumental in enhancing customer journeys for clients like Zeta, a fintech firm, as highlighted by co-founder and CEO Bhavin Turakhia.

Early investors, including Ventureast, have benefitted from the recent funding round, with Ventureast recording a significant return on its investment. The company’s cost-effective structure, rooted in India, has positioned MoEngage competitively in the U.S. market while scaling its operations effectively.

Having raised a total of $307 million in primary funding to date, MoEngage’s future growth trajectory remains promising. Avendus facilitated the recent transaction, underscoring the company’s strategic approach to partnerships and expansion.