MoEngage to raise $70 Mn at $700 Mn valuation

Customer engagement platform MoEngage is in late stage talks to raise a fresh round from new and existing investors, three people aware of the details of the transaction told Entrackr.

The new round is coming for the company within 4 months of its Series D.

“Goldman Sachs is in advanced conversation to lead a $70-75 million worth round in MoEngage. The company’s existing investors will also double down their stake in this round as well,” said one of the people requesting anonymity.

MoEngage helps companies channel marketing efforts and campaigns to potential customers via email, in-app messaging, SMS and web push notifications with auto-optimisation. Brands leverage MoEngage to understand customer behaviour and engage them across channels to improve retention and loan-to-value (LTV) ratio.

In December, the Bengaluru-based company had last raised $30 million from Steadview and existing backers Multiples Alternate Asset Management, Eight Roads Ventures, F-Prime Capital, and Matrix Partners.

“The talks have been on for the past few months and contours of the deal have been finalised,” said a second source, adding that Goldman Sachs has already given the term sheet and if nothing goes wrong at the last moment, the deal will be completed soon.

“MoEngage and stakeholders have given the final nod to the term sheet and the announcement is likely to go out in the media soon,” further said the second source. “MoEngage will be valued at around $700 million [post-money].”

Queries sent to MoEngage, Goldman Sachs, Steadview, Eight Roads and Matrix did not elicit any immediate responses. We’ll update the story in case they do.

The Raviteja Dodda-led company has raised $100 million to date and was estimated to be valued at around $300-350 million during its Series D round. As of December 2021, MoEngage had 450 employees globally with offices in Boston, London, Berlin and Ho-Chi Minh City and others.

MoEngage directly competes with the Tiger Global-backed CleverTap and WebEngage.

While MoEngage is registered in the US, its Indian entity has booked nearly 17% growth in its scale to Rs 82.1 crore in FY21, as per its regulatory filings. During the period, its losses increased merely 3.7% to Rs 2.53 crore in FY21 from Rs 2.44 crore during the last fiscal year (2020).

MoEngage seems to be a fascinating startup with a motivating turn of events of internet publishing platform. I’m sure this startup would continue to prosper in its journey ahead. My best wishes to the entire team of MoEngage. This will give them a huge accomplishment in the future.

Shishir Gupta, Founder and CEO, StartupLanes

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