Goldman Sachs Invests More in MoEngage for Global Growth Expansion
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MoEngage Secures $100 Million Funding to Amplify Global Growth and AI Capabilities
MoEngage, a prominent customer engagement platform collaborating with consumer brands across 75 nations, has announced a significant funding round. Led by existing investor Goldman Sachs Alternatives, the company raised $100 million in its Series F funding. This investment is strategically aimed at enhancing MoEngage’s global market presence and further integrating artificial intelligence (AI) into its offerings. With this recent round, MoEngage has successfully raised a total of $250 million in funding.
New Investors Join the Round
The Series F funding round saw contributions split approximately 60% in primary shares and 40% in secondary shares, with Indian venture capital firm A91 Partners co-leading the investment alongside Goldman Sachs Alternatives. This infusion of capital highlights the growing confidence investors have in MoEngage’s business model and future growth prospects.
The Growing Need for Personalized Marketing
In today’s digital-first landscape, brands are increasingly vying for customer attention. These competitive pressures have prompted companies to leverage existing customer data for personalized marketing. Traditional marketing platforms continue to serve their purpose, but there’s a growing demand for AI-driven tools that can automate marketing strategies and reduce manual tasks. Here, MoEngage offers a compelling solution: its Merlin AI suite, designed to accelerate campaign launches and enhance targeting efficiency.
As co-founder and CEO Raviteja Dodda articulated, “We help B2C brands engage more effectively with their customers by leveraging the first-party data they already have.”
Rapid Global Expansion
Initially focused on India and Southeast Asia during its first seven years, MoEngage has seen remarkable expansion in the last four years, particularly into North America, which now accounts for over 30% of its revenue. Approximately 25% of the company’s business is derived from Europe and the Middle East, with the remaining 45% from its original markets in India and Southeast Asia.
Goldman Sachs’ recent investment is particularly pivotal, providing the resources needed to strengthen MoEngage’s presence on the global stage. The investment bank had also been a significant player in MoEngage’s previous funding round, showcasing their long-term commitment to the company.
Dodda expressed appreciation for ongoing investor support, stating, “The current investors know the most about the company, in terms of how the company performs, and they know everything good and bad. [Goldman Sachs] leading the round is a strong validation of our fundamentals.”
Investment in AI Capabilities
In recent years, MoEngage has heavily invested in generative AI and decision-making AI capabilities, which are now central to their Merlin AI suite. This suite contains various AI agents tailored specifically for marketing applications.
These agents can function as virtual copywriters, aiding in the creation of marketing messages, generating campaign variants, and producing natural language content along with relevant imagery. Additionally, decisioning AI tools within the suite assist brands in determining the optimal target audience for specific messages, including timing and the preferred channel for delivery.
Client Base and Diverse Industries
MoEngage’s extensive portfolio includes over 1,350 consumer brands globally, such as SoundCloud, McAfee, Kayak, Domino’s, and Deutsche Telekom, along with distinguished Indian names like Swiggy, Flipkart, Airtel, and Tata. Approximately 60% of the business is derived from traditional enterprises, with the remaining 40% stemming from internet-centric companies. The platform also caters to over 25 global banks and leading insurers, including JPMorgan Chase and India’s largest insurer, Life Insurance Corporation (LIC).
Many brands have made the shift to MoEngage after previously utilizing platforms from larger incumbents like Adobe, Oracle, and Salesforce. In fact, MoEngage has successfully converted over 300 clients, significantly bolstering its growth in North America and the EMEA regions.
In a specific instance, SoundCloud seamlessly transitioned more than 120 million users to MoEngage in just 12 weeks, utilizing AI-driven insights to promote quicker product launches and improved retention rates among paid users, according to Hope Barrett, senior director of martech at SoundCloud.
Streamlining Marketing Operations
Numerous MoEngage clients relied on multiple point solutions to manage specific functions. MoEngage has been instrumental in consolidating these tools, creating a unified platform that reduces costs and simplifies marketing operations.
Dodda explained, “If you look at all of our brands, whether it’s a bank or an e-commerce company, they leverage MoEngage to unify all their customer data from all touchpoints — be it their offline stores, websites, or mobile apps.”
Impressive Growth Trajectory
Although exact figures have not been disclosed, Dodda mentioned that MoEngage achieved approximately 40% year-over-year growth in the last year. The company aims to sustain a 35% compound annual growth rate (CAGR) for the next three years while also targeting adjusted EBITDA positivity by the end of the current fiscal year.
MoEngage identifies its primary competitors as companies such as Braze and CleverTap, along with established marketing clouds from Adobe, Oracle, and Salesforce.
Future Plans and Workforce Expansion
Currently, MoEngage employs about 800 people across its 15 global offices and plans to expand its workforce. The focus will be on enhancing customer success, support, sales, and marketing teams, particularly in North America and Europe. Furthermore, the company intends to augment its AI capabilities and hire additional talent to spearhead this initiative.
MoEngage is also preparing for an Initial Public Offering (IPO) within the next couple of years, with Dodda emphasizing their aspiration to build a multi-billion dollar revenue enterprise in the customer engagement space.
In summary, with new funding to bolster its global presence and continued investment in AI functionalities, MoEngage is well-poised to lead the next generation of marketing solutions for consumer brands.
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