Goldman Sachs is close to finalizing a substantial investment in enterprise software-as-a-service (SaaS) company MoEngage, with plans to inject $35-50 million through a secondary transaction. This move highlights the growing interest in late-stage SaaS startups, even as the sector undergoes a significant valuation readjustment.
The investment involves Goldman Sachs purchasing shares from some of MoEngage’s early investors, marking it as a fully secondary funding round. Despite the general downturn in SaaS valuation multiples over the past year, the deal activity remains robust.
MoEngage, a marketing-focused SaaS firm based in Bengaluru, was last valued at $700 million following a $77 million funding round led by Goldman Sachs and B Capital in 2022. The firm has raised a total of $182 million since its inception in 2014 and counts notable clients such as Flipkart, Policybazaar, Ola, Oyo, and Mamaearth.
The broader market for SaaS investments has seen a slowdown, with funding for late-stage SaaS firms dropping from $1.53 billion in 2022 to $421 million in 2023. For mid-stage companies, investments declined from $2.1 billion in 2022 to $920 million in 2023. Despite this, significant funding rounds continue, reflecting the ongoing interest in scalable SaaS solutions.
Goldman Sachs and MoEngage have both refrained from commenting on the ongoing transaction. However, this potential investment underscores the sustained interest in the SaaS sector, even amidst fluctuating valuations and a more cautious investment environment.
