Bengaluru and San Francisco-based customer engagement and marketing platform MoEngage has raised $32.5 Mn in Series C1 funding led by Multiples Alternate Asset Management. Existing investors Eight Roads Ventures, F-Prime Capital, and Matrix Partners also participated in the funding round.
The startup has also announced the exit of early investor Exfinity Venture Partners and has completed a buyback of employee stock option plan (ESOP) worth $1.5 Mn from some of its current and former employees.
Founded by Raviteja Dodda and Yashwanth Kumar in 2014, MoEngage had started its Series C funding round in February 2020, when it raised $25 Mn. It operates a cloud-based customer engagement platform which provides cross-channel engagement insights for companies in the ecommerce, retail, travel, hospitality, and banking sectors, among others.
Dodda said the company would use the fresh funds to accelerate international growth and to strengthen the artificial intelligence (AI) and predictive capabilities. MoEngage’s AI engine is called Sherpa, and Dodda added that the company will continue to invest in improving its functionality for marketers. MoEngage claims to have added 250 customers in the past year, including McAfee, Nestle, Domino’s, Deutsche Telekom, Travelodge, Ally Financial, BYJU’S, Flipkart, Malaysia’s CIMB Bank, and Indonesia’s Jingdong.
“As the digital space becomes more competitive, we envision marketers shifting from a rules-based platform to an intelligent platform. Today, Sherpa can tell marketers the most preferred channel, ideal message frequency, the right time to communicate, and the best cross-channel path,” Dodda added.
MoEngage competes with other customer engagement platforms Clevertap, KissFlow, Whatfix, and others in the rapidly growing space. As per a Mordor Intelligence report, the global customer engagement solutions market was valued at $15.52 Bn in 2020, and is expected to reach $30.92 Bn by 2026, with a CAGR of 12.65% from 2021 onwards. Asia Pacific is the fastest growing geography in this space, according to the report.
Dodda said MoEngage opened an office in Germany in the past year and aims to continue expansion in the US and EU regions. Besides this, it has also established a physical presence in Southeast Asia with a new office in Vietnam. The company currently has more than 375 employees across its offices.