Sequoia-backed CleverTap acquires rival Leanplum in stock-and-cash deal

This acquisition will open up wider opportunities in markets for CleverTap across North America, Europe, Latin America, India, Southeast Asia and the Middle East, the company said. The deal is expected to close in the second quarter of 2022.

Founded in 2012, Leanplum is a customer engagement company that helps brands personalise and optimise all customer touchpoints online. According to CleverTap cofounder and executive chairman Sunil Thomas, Leanplum is one-third of its size in terms of revenue. He said CleverTap’s current annualised revenue run-rate (ARR) is nearing $100 million. Thomas started the company in 2013 with Anand Jain and Suresh Kondamudi.

“Leanplum will add significant synergies right from product overlap to diversifying into new geographies,” Thomas told ET.

The company works with brands such as Jio, Meesho, PharmEasy, Dream11,

, Tata Cliq, Air Asia, and Indonesia’s Gojek, among others.

It has around 450 employees across 11 countries, with a product and engineering hub in Mumbai. After the acquisition, the startup will have around 600 employees, with 1,200 customers across the globe. It has clients in over 100 countries.

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“This acquisition will add 30-35% to CleverTap’s revenue line and [the company] aims to cross ARR of $100 million before the end of 2022. We are aiming to grow 10 times in terms of ARR in the next five years,” said Thomas. Last year, CleverTap acquired in-app communication firm Patch.

Backed by funds such as Tiger Global Management and

, the company is headquartered in Mountain View, California, with offices in Mumbai, Singapore, and Dubai.

In October 2019, CleverTap raised $35 million led by existing investors Tiger Global Management and Sequoia Capital India, after which it was valued at $385 million. “Our India plans continue to remain on achieving high growth. Over time, especially post-pandemic, user retention has become significant. And India’s approach toward going digital augurs well for CleverTap ,” Thomas said.