Business News

Capillary Technologies to raise up to $100 million in secondary deal

Capillary Technologies, a leading provider of customer loyalty and engagement solutions, is in the final stages of raising $90-100 million in a secondary transaction, according to sources familiar with the matter.

Secondary deal to provide exit for existing investors

The secondary deal, which is an extension of the previous $45 million series D round that closed in June 2023, will allow some of the existing investors to sell their stakes in Capillary. The buyers are likely to be the same investors who participated in the series D round, led by Avataar Ventures and its LPs (Pantheon, 57Stars, and Unigestion), along with Filter Capital and Innoven Capital.

Capillary did not respond to queries from Entrackr at the time of writing this article. We will update the story if we hear from them.

Capillary offers cloud-based solutions for customer loyalty and engagement

Capillary Technologies was founded in 2012 by Aneesh Reddy, Krishna Mehra, and Ajay Modani. The company offers cloud-based solutions that help brands to understand their customers, engage with them across channels, and reward them for their loyalty. Capillary claims to have over 250 clients across 30 countries, including Tata, PUMA, Shell, Al-Futtaim, and Marks & Spencer. The company’s technology reaches over a billion customers and clocks over 5 billion transactions annually.

Capillary Technologies to raise up to $100 million in secondary deal

Capillary has also expanded its offerings and presence through acquisitions. The company has acquired five companies in the US, including Persuade, Brierley+Partners, and Tenerity’s Digital Connect. These acquisitions have enabled Capillary to enter new verticals such as commerce, aviation, and hospitality, and to leverage gamification to enhance customer loyalty.

Capillary eyes global expansion and growth

Capillary has grown significantly in the US market, which now accounts for more than a third of its revenue. The company has also entered new markets such as the Middle East and South Africa. The company aims to use the fresh funding to further expand its global footprint and pursue more strategic acquisitions.

Capillary has not disclosed its financial performance for FY23, but in FY22, the company reported Rs 223 crore in revenue from operations and Rs 100 crore in losses.

Capillary Technologies is one of the few Indian SaaS startups that have achieved scale and recognition in the global market. The company is also one of the rare examples of a secondary deal in the Indian startup ecosystem, which reflects the maturity and liquidity of the sector.


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