New Delhi: Capillary Technologies, a leading provider of customer engagement and loyalty solutions through its software-as-a-solution (SaaS) products, has recently concluded its Series D funding round with an impressive $45 million. The funding round consisted of a mix of debt and equity and was led by prominent investment firms Avataar Ventures, Filter Capital, and Innoven Capital.
Aneesh Reddy, the founder and managing director of Capillary, expressed his excitement about the recent funding, stating that it positions the company further to expand its presence in North America and Europe. Additionally, the funding will enable Capillary to pursue strategic acquisitions that align with its vision of becoming a global leader in the loyalty industry.
Capillary Technologies plans to utilize the raised funds to support its global expansion efforts, aiming to strengthen its position as a market leader. The company’s strategy also includes mergers and acquisitions to enhance its overall capabilities and offerings. This commitment to growth and innovation underscores Capillary’s determination to solidify its position in the loyalty market.
Highlighting Capillary’s remarkable progress in the United States, the company mentioned that it has grown 3.5 times since the acquisition of Persuade in 2021. This growth has resulted in the United States contributing over one-third of Capillary’s total revenue. This achievement exemplifies the success of Capillary’s business model and the increasing demand for its solutions in the American market.
Founded in 2012 by Aneesh Reddy, Ajay Modani, and Krishna Mehra, Capillary Technologies has established a strong presence in several regions, including the United States, India, the Middle East, and Southeast Asia. The company boasts an extensive client base of over 250 well-known brands, such as Tata, PUMA, Shell, Al-Futtaim, Petron, Domino’s, Kanmo Group, and Marks & Spencer. Through its advanced platform, Capillary powers more than 100 loyalty programs across 30 countries, serving over one billion consumers and processing more than 5 billion transactions annually.
Capillary Technologies has experienced impressive financial growth in recent years. In the fiscal year 2022, the company reported operating revenue of Rs 163.3 crore, representing a substantial increase of nearly 42 percent compared to the previous fiscal year’s revenue of Rs 114.9 crore. Capillary has previously secured $20 million in funding during a round led by Warburg Pincus, a private equity firm, and Sequoia Capital, a venture capital firm, further solidifying its position as an attractive investment opportunity.
Mohan Kumar, the managing partner at Avataar Ventures, commended Capillary’s strategic decision to expand its operations beyond Asia and enter the US and European markets. This expansion has allowed Capillary to diversify its customer base, reaching beyond the retail sector. The company’s success in its loyalty software offerings has been acknowledged by prominent industry analysis, such as the Forrester Wave report, further reinforcing Capillary’s leadership position in the loyalty industry.
With the successful completion of its Series D funding round, Capillary Technologies is well-positioned to accelerate its global expansion efforts, explore strategic acquisitions, and solidify its position as the leading loyalty company on a global scale. The company’s exceptional growth, diverse client base, and strong financial performance make it a formidable player in the customer engagement and loyalty solutions market.
