Capillary raises $45 million in Series D round from Avataar Ventures, Pantheon and others

Software-as-a-Service (SaaS) company, Capillary Technologies, has raised $45 million in a Series-D funding round from a consortium of investors, including Avataar Ventures, Pantheon, 57 Stars, Unigestion, Filter Capital, and Innoven Capital.

The funds raised will be used for the company’s global expansion efforts and to support its mergers and acquisitions strategy. Over the past few years, the loyalty management and customer engagement company has seen more enterprise brands prioritise customer loyalty to enhance retention rates and decrease customer acquisition costs. This helped Capillary Technologies record significant growth in the US, expanding 3.5 times since the acquisition of Persuade in 2021. The US now accounts for more than a third of Capillary’s revenues.

The company also acquired Texas-based Brierley recently. Capillary Technologies’ Founder and MD, Aneesh Reddy said, “It has been an incredible journey over the past decade-an-a-half. There have been immense learnings and I am grateful for the support of all the investors we’ve had till now, and I am pleased to welcome new investors on-board. A commitment from marquee investors from Avataar’s LPs, along with existing investors from Avataar Ventures and Filter Capital is a testament to the value Capillary Technologies has created in the loyalty domain. 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 pre-eminent loyalty company globally.”

Mohan Kumar, Managing Partner at Avataar Ventures said, “It has been remarkable witnessing Capillary’s business transformation over the past four years. 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 such as the Forrester Wave. Given the expanded addressable market and the immense potential that lies ahead, Avataar is wholeheartedly committed to supporting Capillary in its pursuit to become a global market leader.”

Founded in 2012, Capillary Technologies has a presence across the US, India, West Asia, and Asia, in particular, South-East Asia. Capillary is an end-to-end customer loyalty platform that offers a comprehensive view of consumers, and unified, cross-channel strategies that deliver a real-time omnichannel, personalised, and consistent experience to customers. It works with 250+ enterprise brands, touching more than 1 billion customers across the globe. Some of its clients include Tata, PUMA, Shell, Al-Futtaim, Petron, Domino’s, Kanmo Group, and Marks & Spencer.

COMMENT NOW