Why We Invested in MoEngage
By Kabir Narang, Aakash Tulsani, and Dhruv Jain
B Capital has had the privilege to partner with leading cross-border SaaS companies that are building in Asia for the world. MoEngage is a leading customer engagement solution enabling brands to drive multi-channel and highly personalized engagement with customers. It differentiates from key competitors by offering AI powered insights and advanced analytics in additional to personalized multi-channel communication capabilities.
An increasing problem plaguing consumer businesses is the efficient targeting and retention of customers. With rising acquisition costs, the old adage that ‘it is cheaper by an order of magnitude to retain customers than to acquire new ones’ has never been more pertinent. While digital spends on Google and Facebook make up the bulk of new customer acquisition spends, both channels combined only constitute ~5% of retention spends indicating the importance of proper retargeting.
With improving user experience, communication with customers is also moving away from traditional methods of SMS and email to newer and more interactive channels such as in-app push notifications, dynamic feeds and rich native channels of marketing. The increasing penetration of mobile apps across all facets of interaction enable increasing popularity of dynamic messaging. 45% of marketers leverage mobile apps as the main channel of communication with customers and ~40% of marketers believe that targeted notifications are the best method to help re-engage customers.
Automated cross-channel personalized communication workflow
Also, in an increasingly competitive environment, customized targeting of customers across channels becomes imperative for companies. Given the increase in data privacy of users, companies need to efficiently capture and use their own proprietary data (1st party) to provide customized customer experience depending on their journey and reduce reliance on aggregated 3rd party data.
User segmentation enabling better engagement
This is why we invested in MoEngage, a leading customer engagement platform that empowers companies to engage better with their target audience by moving from a campaign centric approach to a customer centric approach.
With the power of MoEngage, teams can draw insights and act upon those insights along parameters such as: customer affinities, preferred channels, optimal time to communicate, loyalty, and even predict a customer’s propensity to become inactive or convert. MoEngage is the engine that can drive growth for a business and enable product and marketing teams to deliver best results.
We first met the MoEngage team in 2019 and have been impressed to see how the product, use-cases and depth within customers have dramatically increased over time. The platform is useful to customers across all segments of business with MoEngage already having customers in industries ranging from real-estate to Web3 across six continents globally. They currently touch over a billion customers globally!
The company has been capital efficient and has built a premier platform with strong technology and category-defining innovation. MoEngage is also a leader in terms of their AI/ML capabilities powering insights that guide mission critical business decisions. Predictive intelligence is a key feature which has seen customer love and traction as it helps businesses become proactive rather than reactive. As a global SaaS investor, we were able to see how the customer level translated to best-in-class net revenue retention and ARR growth.
Strong values and culture have been foundational to the scaling of MoEngage. Having interacted with the team over 3 years, we have seen their strength, capability, and resilience. The team has been able to attract excellent talent across geographies and roles while remaining true to its core values.
We are excited to be part of MoEngage’s journey as they build the most trusted customer engagement platform for the digital-first world.