CleverTap's existing investors Sequoia India and Accel Partners also participated, valuing the company over $150 million, its CEO and Co-founder Sunil Thomas said.
Tiger Global Management, among the biggest backers of Indian startups, has invested $26 million in Series B round of funding in artificial intelligence and machine leaning drive mobile marketing platform CleverTap. Existing investors Sequoia India (led the round) and Accel Partners also participated. The new round values the company over $150 million, CEO and Co-founder Sunil Thomas announced in a company blog spot.
The capital will be deployed towards product development, expanding customer success teams, security, marketing technology and hiring global talent, Thomas explained.
CleverTap has been expanding to North America, Singapore, Europe, and India over last year while its revenue has been growing at 250 per cent year-over-year since 2015. This has led to $2 billion in incremental revenue for its customers, the company said in a statement.
“Marketing technology is undergoing rapid transformation, and we believe CleverTap is well positioned to help consumer businesses drive materially higher customer lifetime values,” said Scott Shleifer, Partner, Tiger Global in a company statement.
“CleverTap is meeting the growth and retention needs of some of the fastest growing consumer apps such as GO-JEK, Fandango, Hotstar and Zilingo. Powered by the next generation of data science enabled capabilities, it’s allowing companies to automate their marketing decisions,” said Prashanth Prakash, Partner at Accel.
With app marketing automation, CleverTap’s platform helps the app marketers to retain user engagement and win back users. It boasts of over 8,000 clients globally.
For Tiger Global, while it has slowed down on investments in India but the country has continued to be its second largest market globally as it has made maximum investments in India after the US ever since it was launched in 2001.
According to deals tracker Crunchbase, “Indian companies have attracted more than 30 per cent of Tiger Global’s total reported investment deals since Tiger’s first fund.”
However, Tiger Global saw the departure of its top executive Lee Fixel who was one of the early backers of Flipkart. Fixel will leave Tiger Global at the end of June, the fund had announced in a letter to clients and seen by Reuters.
Globally, the marketing automation software market is expected to become $32.6 billion in size by 2024, growing at a CAGR of 13.6 per cent, said a report by market research firm Prescient & Strategic Intelligence.