Capillary Technologies raises $45 million in Series D funding round

Capillary Tech plans to utilise the funds for global expansion efforts and to support its mergers and acquisitions strategy.

Capillary Technologies, a company that offers customer engagement and loyalty SaaS (software-as-a-solution) products and solutions to enterprises, has raised $45 million in its Series D funding round in a mix of debt and equity led by Avataar Ventures, Filter Capital, and Innoven Capital.

"With this new funding, we are poised to expand our footprint in North America and Europe and pursue strategic acquisitions that align with our vision of becoming the preeminent loyalty company globally," said Aneesh Reddy, founder and managing director of Capillary.

The firm plans to utilise the funds for global expansion efforts and to support its mergers and acquisitions strategy, the company said in a media statement on June 1.

"Capillary Technologies witnessed exceptional growth in the United States, expanding 3.5 times since the acquisition of Persuade in 2021. The US now accounts for more than a third of Capillary’s revenue," the firm said in the media statement.

Client list

Founded in 2012 by Reddy, Ajay Modani, and Krishna Mehra, Capillary Technologies has a presence across the United States, India, the Middle East, and Asia, in particular, Southeast Asia.

The company claims to be working with over 250 brands, including Tata, PUMA, Shell, Al-Futtaim, Petron, Domino's, Kanmo Group, and Marks & Spencer.

The firm's platform currently powers over 100 loyalty programmes across more than 30 countries and it claims to have a reach of over one billion consumers, processing more than 5 billion annual transactions.

Capillary Technologies reported an operating revenue of Rs 163.3 crore, up nearly 42 percent in FY22 from Rs 114.9 crore in FY21. In 2018, the firm raised $20 million in a new round of funding from private equity firm Warburg Pincus and venture capital firm Sequoia Capital.

"The strategic decision to diversify from Asia into the US and Europe, encompassing various consumer verticals beyond retail, has been nothing short of impressive. This move has catapulted Capillary into a leadership position in Loyalty software and this has been recognised by external mentions like the Forrester Wave," said Mohan Kumar, managing partner at Avataar Ventures.