CleverTap's Leanplum buyout triggers layoffs, top deck exits three years on
CleverTap confirmed the layoffs, executive exits, and Leanplum's liquidation, but maintained that the restructuring had largely impacted the acquired entity.
'As part of our long-term growth strategy and consolidation efforts, we are liquidating our Bulgaria-based Leanplum entity. This means parting ways with all Sofia (Bulgaria) employees through a fair, legal, and respectful process," a CleverTap spokesperson said in response to Mint's queries. 'These consolidation efforts have no impact on our customers, and they do not affect our employees in any other region."
Nearly Leanplum's entire Sofia-based engineering team, a key offshore cost center, was let go. 'There were about 100 Leanplum employees when they joined; 60-70 are gone now," said a person familiar with the matter. 'And another 40-50 people from CleverTap India were laid off too."
'Employees were told everything was stable just days before," said a second person. 'Then the entire team was shut out, citing a 'bad marriage'."
Big bet gone sideways
CleverTap, a customer engagement software provider, has raised over $182 million so far and was last valued at around $800 million in 2022, when it raised $105 million in Series D funding from CDPQ, IIFL Finance, Peak XV, and others.
The company was founded in San Francisco, California by Sunil Thomas, Suresh Kondamudi, and Anand Jain in 2013. In 2022, CleverTap acquired San Francisco-based Leanplum in May 2022 aiming to scale globally with a presence across North America, Europe, Latin America, India, Southeast Asia, and West Asia.
But the integration of Leanplum with CleverTap was rocky from the start, said the people mentioned earlier. Product overlaps weren't resolved, sales funnel performance lagged, and Leanplum's existing client base turned out to be a disappointment, they said.
'The so-called existing clients were gone. I don't think anything came out of it," said the first person quoted above.
CleverTap said many of Leanplum's customers have migratedto its systems. 'They are seeing strong results. We'll work closely with the remaining customers to complete their upgrade to CleverTap by year-end," CleverTap's spokesperson added.
To be sure, recent rapid growth in artificial intelligence and reduced spending by clients has posed challenges for software-as-a-service (SaaS) companies. According to data from Venture Intelligence, while funding for Indian SaaS startups slightly improved to $1.8 billion in 2024 from $1.3 billion in the year prior, it was much lower than the $4.4 billion raised in 2022.
Leadership churn and internal strain
The Leanplum integration troubles apart, at least four senior executives have exited CleverTap in the past 3-4 months, multiple people said.
Leanplum co-founder Momchil Kyurkchiev, who was named CleverTap's chief strategy officer following the acquisition; chief revenue officer Sidharth Pisharoti; chief operating officer and chief customer officer Abhishek Gupta; and vice president of finance and legal Sourabh Arora, among others, have called it quits, according to these people.
'They had hired expensive resources, and business growth couldn't keep up with the kind of salaries and seniority they brought in. The top deck is almost empty. People have either left or are mulling exits," said a third person aware of the development.
CleverTap said it has since filled all key leadership roles.
'Leadership transitions, across levels and functions, are a natural part of any high-growth business. All other senior leadership roles have been filled, ensuring seamless continuity in leadership and execution," said the spokesperson.
Ranjeet Walunj, who joined CleverTap in 2019 and previously served as senior vice president, was elevated to chief customer officer in April, according to the company's website.
Earlier in November, CleverTap's global chief executive Sidharth Malik stepped down citing personal reasons, with cofounder Sunil Thomas returning as CEO.
CleverTap's revenue growth has slowed sharply since the Leanplum acquisition—in 2023-24, its revenue rose 6.3% to ₹430.55 crore after growing at 46.3% in FY23. Profit slumped to ₹30.41 crore in FY24 and ₹30.45 crore in FY23 from ₹52.22 crore in FY22.
CleverTap is yet to report its financials for FY25.
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