Goldman Sachs Looks To Double Down On MoEngage With $30-50 Mn Infusion

Goldman Sachs is reportedly looking to double down on Bengaluru-based MoEngage and is also in advanced discussions with the software as a service (SaaS) provider to invest $30-50 Mn (INR 250 – 418 Cr) via secondary deal.

“Goldman has decided to buy shares (of MoEngage) from some of the early investors. It’s a fully secondary funding round,” ET reported, citing a person familiar with the matter. 

This comes at a time when investors such as GetVantage and Velocity have announced fund allocation to invest in high potential SaaS startups as the sector has seen a higher traction in 2024.

The report also said that deal activity has picked up pace even as SaaS funding valuation multiples have readjusted significantly over the past year, based on people aware of the developments.

“The contours are still being finalised, but there may be a discount to MoEngage’s last valuation for this Goldman investment,” a source was quoted as saying by the ET..

Founded in 2014 by Yashwanth Kumar and Raviteja Dodda, MoEngage helps consumer brands amplify and scale customer engagement, and it has been providing its services from startups to global enterprises.

With MoEngage, it claims these users (companies) analyse audience behaviour and engage consumers with personalised communication across their lifecycle.

Earlier, MoEngage raised $77 Mn in a Series E funding round led by Goldman Sachs Asset Management and B Capital in 2022, to strengthen its presence in countries such as the US, Europe, Asia and the Middle East, and foray into newer markets such as Latin America, Australia and New Zealand.

Meanwhile, in an exchange filing on behalf of CarTrade, Goldman Sachs Asset Management BV informed the bourses that it has increased its stake in the startup to 5.15%, becoming a substantial shareholder, in May.