Goldman Sachs plans to double its shares in the SaaS startup MoEngage and invest $30 million to $50 million in the firm through a second funding round. The company is looking to buy some shares from the early investors of MoEngage in a secondary transaction. The source close to the deal told ET that the terms are still being finalized and there may be discounts to the startup’s last valuation for Goldman Sach investment.
The startup plans to use these fresh proceeds to scale its operations, enhance its research & development, use advanced technologies, and expand its network while meeting general corporate purposes. MoEngage is a customer management platform developed using data insights for consumer brands. The platform leverages AI-driven insights and technologies to offer omnichannel experiences to its customers. This startup helps brands to deliver their new products and messages across various platforms through any channel. The firm uses artificial intelligence and behavioral analysis to provide its users with customized experiences and help them reach the product they want in an easier and faster way.
This Bengaluru-based startup previously had a valuation of $700 million followed by a 77 million USD funding round led by Bcapital and Goldman Sachs. The firm was co-founded by Raviteja Dodda and Yashwanth Kumar in 2022 to offer brands with better customer engagement and reach. The startup has secured around 182 million USD in funding to date. The company is backed by various known investors including private equity firm Multiples, Eight Roads Ventures, and Matrix Partners India. MoEngage analyzes customer behavior and develops a report to act on it at the given instant to offer better customer reach. The platform allows the brands to improve customer engagement and drive LTV.
The company has leading companies in the industry as its clients including Oyo, Flipkart, MamaEarth, Ola, and More. This investment shows the trust of Goldman in MoEngage’s business model and market potential. The development came just when the SaaS companies were booming in the Indian startup ecosystem with increased interest of investors in this sector. This SaaS-based startup faces competition from other companies such as Drift, OutBrain, OneSignal, and Braze. The company has around 1200+ brands in its platform working on customer engagements.
Conclusion:
MoEngage is an insights-led customer engagement platform that enables brands to reach more customers and increase their brand presence. The startup may get an investment of up to $50 million from Goldman Sachs. The person close to this development told ET that the firm is already finalizing the documents and reaching an agreement. MoEngage intends to use this fresh capital to strengthen its brand presence, scale its operations, enhace its platform, and meet general corporate purposes. The platform uses artificial intelligence and behavioral analysis to offer customized experiences to its users and increase product reach. The Bengaluru-based startup has secured around $182 million since its inception. The startup previously reported a valuation of 700 million USD.
