Practically three years after buying US-based Leanplum to energy its international growth, Peak XV Companions-backed software program firm CleverTap is grappling with integration challenges which have triggered top-level exits, layoffs, and liquidation of the acquired entity, a number of folks advised Mint.
CleverTap confirmed the layoffs, govt exits, and Leanplum’s liquidation, however maintained that the restructuring had largely impacted the acquired entity.
“As a part of our long-term development technique and consolidation efforts, we’re liquidating our Bulgaria-based Leanplum entity. This implies parting methods with all Sofia (Bulgaria) staff by a good, authorized, and respectful course of,” a CleverTap spokesperson stated in response to Mint’s queries. “These consolidation efforts haven’t any affect on our prospects, and they don’t have an effect on our staff in some other area.”
Practically Leanplum’s complete Sofia-based engineering group, a key offshore value heart, was let go. “There have been about 100 Leanplum staff after they joined; 60-70 are gone now,” stated an individual conversant in the matter. “And one other 40-50 folks from CleverTap India have been laid off too.”
“Staff have been advised the whole lot was secure simply days earlier than,” stated a second individual. “Then the complete group was shut out, citing a ‘dangerous marriage’.”
Large guess gone sideways
CleverTap, a buyer engagement software program supplier, has raised over $182 million thus far and was final valued at round $800 million in 2022, when it raised $105 million in Sequence D funding from CDPQ, IIFL Finance, Peak XV, and others.
The corporate was based in San Francisco, California by Sunil Thomas, Suresh Kondamudi, and Anand Jain in 2013. In 2022, CleverTap acquired San Francisco-based Leanplum in Might 2022 aiming to scale globally with a presence throughout North America, Europe, Latin America, India, Southeast Asia, and West Asia.
However the integration of Leanplum with CleverTap was rocky from the beginning, stated the folks talked about earlier. Product overlaps weren’t resolved, gross sales funnel efficiency lagged, and Leanplum’s present shopper base turned out to be a disappointment, they stated.
“The so-called present shoppers have been gone. I don’t assume something got here out of it,” stated the primary individual quoted above.
CleverTap stated a lot of Leanplum’s prospects have migratedto its programs. “They’re seeing sturdy outcomes. We’ll work intently with the remaining prospects to finish their improve to CleverTap by year-end,” CleverTap’s spokesperson added.
To make sure, current speedy development in synthetic intelligence and lowered spending by shoppers has posed challenges for software-as-a-service (SaaS) corporations. In accordance with knowledge from Enterprise Intelligence, whereas funding for Indian SaaS startups barely improved to $1.8 billion in 2024 from $1.3 billion within the 12 months prior, it was a lot decrease than the $4.4 billion raised in 2022.
Management churn and inside pressure
The Leanplum integration troubles aside, at the least 4 senior executives have exited CleverTap previously 3-4 months, a number of folks stated.
Leanplum co-founder Momchil Kyurkchiev, who was named CleverTap’s chief technique officer following the acquisition; chief income officer Sidharth Pisharoti; chief working officer and chief buyer officer Abhishek Gupta; and vp of finance and authorized Sourabh Arora, amongst others, have referred to as it quits, in keeping with these folks.
“That they had employed costly sources, and enterprise development couldn’t sustain with the form of salaries and seniority they introduced in. The highest deck is sort of empty. Individuals have both left or are mulling exits,” stated a 3rd individual conscious of the event.
CleverTap stated it has since stuffed all key management roles.
“Management transitions, throughout ranges and capabilities, are a pure a part of any high-growth enterprise. All different senior management roles have been stuffed, guaranteeing seamless continuity in management and execution,” stated the spokesperson.
Ranjeet Walunj, who joined CleverTap in 2019 and beforehand served as senior vp, was elevated to chief buyer officer in April, in keeping with the corporate’s web site.
Earlier in November, CleverTap’s international chief govt Sidharth Malik stepped down citing private causes, with cofounder Sunil Thomas returning as CEO.
CleverTap’s income development has slowed sharply because the Leanplum acquisition—in 2023-24, its income rose 6.3% to ₹430.55 crore after rising at 46.3% in FY23. Revenue slumped to ₹30.41 crore in FY24 and ₹30.45 crore in FY23 from ₹52.22 crore in FY22.
CleverTap is but to report its financials for FY25.