Capillary Technologies, a customer engagement and loyalty solutions platform, has raised $140 million in its ongoing Series D funding round to fuel its global expansion and allow the company to enhance its artificial intelligence initiatives.
The company recently announced a secondary deal of $95 million, attracting investments from Avataar Ventures and others.
Capillary plans to allocate $20 million from the latest funds for Employee Stock Ownership Plan (ESOP) payouts in a strategic move. This capital injection follows the previous funding of $45 million in June 2023, with contributions from Avataar Ventures, Filter Capital, and Innoven Capital.
“The additional funding will fuel Capillary’s AI initiatives (generative loyalty), accelerate global expansion, and further strengthen its position as a pioneer in customer loyalty SaaS solutions space,” said Aneesh Reddy Founder & MD at Capillary Technologies.
Global Presence and Growth
Founded in 2012, Capillary Technologies operates in the United States, India, the Middle East, and Asia, particularly Southeast Asia. The company collaborates with over 400 renowned brands, including Tata, PUMA, Shell, Al-Futtaim, and Marks & Spencer.
Capillary’s platform currently powers over 100 loyalty programs across more than 30 countries, reaching over one billion consumers and processing over five billion annual transactions. The firm reported a 42 percent increase in operating revenue, reaching Rs 163.3 crore in FY22, showcasing its robust financial performance.
Now totaling $140 million, the expanded Series D round positions Capillary Technologies to further its artificial intelligence (AI) initiatives, specifically in generative loyalty. This funding will also accelerate the company’s global expansion plans, solidifying its position as a pioneer in the customer loyalty SaaS solutions space.
US Growth and Acquisitions
Capillary Technologies highlighted a remarkable fourfold expansion in its United States operations over the past three years. As part of its growth strategy, the company acquired three US-based firms – Persuade, Brierley+Partners, and Tenerity’s Digital Connect.
While the US contributes over a third of Capillary’s revenue, the firm’s recent financial report for FY22 revealed an impressive INR 223 crore in operating income. However, losses surged from INR 22.8 crore to INR 100 crore during the same fiscal year.
“As an investor, we believe in the company’s vision and are confident in its ability to disrupt the customer loyalty space. The expanded Series D funding and commitment to employee ownership reflect Capillary’s strong leadership and potential for long-term success,” Mohan Kumar, Managing Partner at Avataar Ventures, said in a statement.
The additional funding secured by Capillary Technologies positions the company for further innovation and global reach. With a focus on AI initiatives and expansion plans, the company remains at the forefront of providing cutting-edge customer engagement and loyalty solutions.
Stay ahead of the curve and follow IndiaTechDesk on Facebook, Twitter and Linkedin for in-depth news of market trends, funding updates, and regulatory changes affecting startups in India.
Read More:
- Incred, Indian Fintech Firm Zooms into Coveted Unicorn Club with $60M Boost
- GreyOrange Raises $135 Million in Series D Funding Led by Anthelion Capital
- Perfios Secures $229 Million in Series D Funding Led by Kedaara Capital
- Consumer Lending Platform, EarlySalary Bags $110 million in its Series D
- B2B Packaging Materials Marketplace Bizongo Secures $25 million Series D
