MoEngage, a global customer engagement leader, today announced the successful close of its $180 million Series F follow-on funding round. The company closed a $100 million funding round only three weeks ago. This new influx of investment underscores a boom time for the industry and its rising maturity and attractiveness to investors. With operations spanning 75 countries, MoEngage has positioned itself as a vital tool for consumer brands seeking to enhance customer interactions.
With the matching funding, the recent $87 million in primary funding brings in $123 million in secondary funding. This allows for early investors and employees to reach liquidity without requiring a public offering immediately. Significantly, $15 million of this secondary funding went towards an employee tender, empowering 259 current and former employees. The balance of $57 million is earmarked as primary capital meant to ramp up MoEngage’s current business operations.
MoEngage’s unusual secondary-heavy funding structure further accentuates its late-stage status in the market. The capital raised will vastly improve liquidity for all stakeholders. It will provide the company with the financial flexibility to pursue tuck-in strategic acquisitions in the U.S. and Europe.
Raviteja Dodda, CEO and co-founder of MoEngage expressed the strategic importance of this funding round.
“It gives us the opportunity not to have an urgency with regard to going IPO.” – Raviteja Dodda
This notable capital injection enables MoEngage to reach more software firms that fit into the company’s overall mission to help brands better engage their customers. It allows the firm to ramp up its go-to-market initiatives in critical regions.
With dual headquarters in Bengaluru and San Francisco, MoEngage has been on a fast growth revenue run rate. The company projects to finish this year with an annualized recurring revenue run rate near $100 million. Today, more than 30% of its revenue is derived from North America. In addition, about 25% is produced from Europe and the Middle East. The other 45% of revenue comes from India and Southeast Asia.
Dodda illustrated the complex nature of customer engagement, explaining how it goes further than 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.” – Raviteja Dodda
MoEngage isn’t stopping there. The company is keen to keep innovating while concurrently expanding its reach. Consequently, the firm is well positioned amidst the cutthroat customer engagement solutions market. The recently announced round of funding will allow the rapidly growing company to further develop its platform. It’ll help them seize new growth opportunities, particularly in international markets where the need for strong customer engagement tools is on the rise.
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