Why MoEngage Is Considering an India Homecoming for Its IPO
Customer engagement platform MoEngage is making moves that reflect a significant shift in the tech IPO landscape. The San Francisco-based company, founded in 2014 by Raviteja Dodda and Yashwanth Kumar, is reportedly in early talks to relocate its headquarters from the US back to India. This potential move falls into a trend known as “Desh Wapsi” (returning to the homeland) that’s gaining momentum among Indian-origin tech companies.
With $207.38 million in total funding from investors including Goldman Sachs and Eight Roads Ventures, MoEngage now faces a crucial strategic decision: Where should it go public?
The India Advantage: Lower Barriers to IPO
The motivation behind MoEngage’s potential relocation isn’t simply nostalgia—it’s smart business. India’s IPO landscape offers distinct advantages over the US market, particularly for growth-stage companies.
In the US, companies typically need to demonstrate consistent profitability or exceptionally strong growth metrics to attract investor interest for an IPO. The bar is high, and the scrutiny is intense.
India, by contrast, has created more accessible on-ramps to public markets. The Securities and Exchange Board of India (SEBI) has established frameworks that allow growing companies to list even if they haven’t yet achieved profitability. This makes the Indian market particularly appealing for tech businesses still in their expansion phase.
The “Reverse Flip” Phenomenon
MoEngage isn’t alone in considering this path. Several prominent tech companies with Indian origins have executed or are contemplating similar moves:
- Flipkart: Though acquired by Walmart, the e-commerce giant had been exploring a return to Indian domicile before the acquisition
- Razorpay: The fintech company has reportedly been evaluating a similar strategy
- Pine Labs: Recently received approval for its reverse flip to India
This reverse migration contrasts with the traditional trajectory of Indian startups, which historically flipped to the US or Singapore to access better funding opportunities. Now, as India’s economy and capital markets mature, the pendulum is swinging back.
Market Context: Why Timing Matters
The timing of MoEngage’s consideration coincides with broader market dynamics. The success of recent IPOs like Swiggy’s has demonstrated strong investor appetite for tech companies in the Indian market.
This favorable climate stands in contrast to the more cautious approach in US markets, where tech IPOs have faced more scrutiny following a series of underwhelming performances in 2022-2024. Indian markets have shown greater resilience and enthusiasm for tech listings, creating a welcoming environment for companies like MoEngage.
Key Factors in the IPO Location Decision
For MoEngage and similar companies, the decision about where to list involves weighing several critical factors:
| US Market | Indian Market |
| Higher valuations (potentially) | Lower profitability requirements |
| More stringent financial requirements | Growing investor base |
| Greater regulatory hurdles | Familiarity with local market |
| Broader investor pool | Brand recognition and local goodwill |
The Strategic Calculus Behind Domicile Decisions
The decision to relocate isn’t purely about IPO logistics. It reflects a sophisticated understanding of the company’s strategic position and growth trajectory.
For MoEngage, which serves global clients but has deep Indian roots, the choice involves balancing multiple considerations:
- Revenue Distribution: Where are the company’s primary revenue sources?
- Growth Markets: Which regions represent the strongest future growth?
- Operational Efficiency: Where can the company operate most effectively post-IPO?
- Investor Relations: Which investor community best understands the company’s value proposition?
As MoEngage reportedly consults with advisors and bankers on this potential move, these factors are likely central to their analysis.
Implications for the Broader Tech Ecosystem
MoEngage’s decision has significance beyond its own corporate strategy. It signals a potential rebalancing in the global tech funding ecosystem.
If successful tech companies increasingly look to markets outside the US for their public offerings, it could accelerate several shifts:
- Growing legitimacy of emerging market exchanges for tech listings
- More capital flowing into these alternative markets
- Greater diversity in how tech companies approach funding throughout their lifecycle
- Reduced dependency on US markets as the ultimate destination
This evolution could create more options for founders and investors alike, potentially leading to more nuanced approaches to company building and exit strategies.
What This Means for SaaS Companies
For other SaaS businesses watching MoEngage’s moves, the implications are particularly relevant. The customer engagement platform operates in a space where many companies share similar characteristics:
- High growth potential
- Significant upfront investment in product development
- Gradual path to profitability
- Global customer base
These traits make the IPO location question especially pertinent. If markets like India continue to develop frameworks that accommodate these business models better than US exchanges, we might see more SaaS companies taking similar paths.
The trend could influence not just where companies go public, but how they structure their operations from an earlier stage, potentially keeping more corporate structures rooted in their home markets rather than flipping to the US or Singapore prematurely.
“They weren’t kidding when they said home is where the IPO is”
The potential “Desh Wapsi” of MoEngage represents more than just another corporate reorganization. It signals an important shift in how tech companies view their options for growth and capital access.
As India’s capital markets continue to mature and as other emerging economies develop more sophisticated funding ecosystems, the traditional pathways for tech companies may continue to diversify. The US market will undoubtedly remain a powerhouse, but it’s no longer the only viable destination for ambitious tech firms.
For founders and investors, this evolution creates both new opportunities and new complexities. The decision about where to build, grow, and eventually list a company now involves a richer set of options, each with its own advantages and trade-offs.
As MoEngage and its peers navigate these choices, they’re not just making decisions for their own companies—they’re helping to reshape the global landscape for tech funding and growth. The home market advantage might just be the next big thing in tech IPO strategy.