Enterprise software-as-a-service (SaaS) company MoEngage has closed a $100 million funding round led by A91 Partners and existing investor Goldman Sachs Alternatives. The funding comprises 60% primary capital with the rest being a secondary sale of shares by existing backers.
According to sources in the know, the primary capital came in at a valuation of around $750 million, while the secondary transactions were valued at 15-20% discount, people familiar with the deal details said. The blended valuation of MoEngage stands at $700 million, these people added. In a secondary transaction, existing investors partly or fully sell their stake.
With north America contributing a major share of its revenues, the firm plans to use the monies for international expansion across the US, Europe, Middle East, and Africa (EMEA). The secondary funds will be used to buy shares from early investors.
"We will be focussing on our growth and expansion into foreign markets. We will also focus on product lines, such as cross-channel marketing, transactional messaging, and personalised website experiences," cofounder and CEO Raviteja Dodda told ET in an interaction.
Founded in 2014 by Dodda and Yashwanth Kumar, the US-headquartered company helps business-to-consumer (B2C) brands market their products using its artificial intelligence (AI) agents. While 60% of its clients are traditional enterprises, almost 40% are new-age firms such as Swiggy, Ola, Mamaearth, and Policybazaar.
Although they largely work with the retail e-commerce sector, financial services clients have picked up in the last few years, said Dodda.
The company, which started in India, began investing in the US market in late 2020. Currently, 30% of its business comes from north America, 25% from Europe and the Middle East, and the rest from India.
The company has close to 800 employees spread across its offices in Bengaluru and San Francisco.
The company claims it will reach $100 million in annual recurring revenue (ARR) by the end of 2025. "We have 40% on-year revenue growth compared to the previous quarter," said Dodda. He added that the company will continue to operate as a US entity.
According to sources in the know, the primary capital came in at a valuation of around $750 million, while the secondary transactions were valued at 15-20% discount, people familiar with the deal details said. The blended valuation of MoEngage stands at $700 million, these people added. In a secondary transaction, existing investors partly or fully sell their stake.
With north America contributing a major share of its revenues, the firm plans to use the monies for international expansion across the US, Europe, Middle East, and Africa (EMEA). The secondary funds will be used to buy shares from early investors.
"We will be focussing on our growth and expansion into foreign markets. We will also focus on product lines, such as cross-channel marketing, transactional messaging, and personalised website experiences," cofounder and CEO Raviteja Dodda told ET in an interaction.
Founded in 2014 by Dodda and Yashwanth Kumar, the US-headquartered company helps business-to-consumer (B2C) brands market their products using its artificial intelligence (AI) agents. While 60% of its clients are traditional enterprises, almost 40% are new-age firms such as Swiggy, Ola, Mamaearth, and Policybazaar.
Although they largely work with the retail e-commerce sector, financial services clients have picked up in the last few years, said Dodda.
The company, which started in India, began investing in the US market in late 2020. Currently, 30% of its business comes from north America, 25% from Europe and the Middle East, and the rest from India.
The company has close to 800 employees spread across its offices in Bengaluru and San Francisco.
The company claims it will reach $100 million in annual recurring revenue (ARR) by the end of 2025. "We have 40% on-year revenue growth compared to the previous quarter," said Dodda. He added that the company will continue to operate as a US entity.
