MoEngage, a rapidly growing customer engagement platform serving brands in 75 countries, has just raised another $180 million in a Series F follow-on round. This comes less than a month after securing $100 million, indicating strong investor confidence and a strategic approach to capital allocation. Notably, the majority of this latest funding ($123 million) was allocated for secondary transactions, enabling early investors and employees to realize returns. Only $57 million went directly into the business.
Secondary Deals: Why They Matter
The emphasis on secondary sales is significant. Unlike traditional funding rounds focused solely on company growth, this structure allows early backers—including Eight Roads Ventures, Helion Venture Partners, and Ventureast—to cash out without forcing MoEngage toward an immediate IPO. This gives the company flexibility to pursue long-term strategy instead of being dictated by investor exit timelines. Ventureast, for example, reportedly achieved a 10x return on its 2018 investment.
AI-Driven Growth and Expansion Plans
The primary capital will fuel expansion into AI capabilities, particularly the company’s “Merlin” suite. MoEngage aims to improve marketing team efficiency through AI-powered decision-making and automation. The company is also bundling analytics and transactional messaging tools into a broader product offering, which is expected to increase average contract values and expand its market reach.
MoEngage’s CEO, Raviteja Dodda, highlights the shift toward serving more than just marketing teams: “Customer engagement is not just focused on marketing teams. Product and engineering teams are also heavily involved in making sense of customer behavior.”
Geographic Focus and Strategic Acquisitions
MoEngage plans to use part of the funding for strategic acquisitions in the U.S. and Europe, targeting companies that complement its platform or accelerate expansion. It will also invest in small AI teams to enhance its intelligence-led offerings. The company already generates 30% of its revenue from North America, 25% from Europe and the Middle East, and 45% from India and Southeast Asia.
Financial Outlook
MoEngage expects to achieve EBITDA profitability this quarter and is targeting 35% compound annual growth over the next three years. The current valuation is “well over” $900 million post-money, with annualized recurring revenue tracking toward $100 million this year.
The secondary-heavy funding structure reflects MoEngage’s maturity, allowing it to prioritize long-term growth without immediate IPO pressure.
MoEngage’s strategic approach—combining AI investment, international expansion, and flexible funding—positions it for continued success in the competitive customer engagement market. The company still plans to go public within a couple of years, but will do so on its own terms.
