Software firm Capillary Technologies raises $45mn in Series D round

Loyalty management and customer engagement tech firm Capillary Technologies has announced the successful closure of its Series D funding round, during which it raised $45 million from a consortium of global investors — Avataar Ventures along with its limited partners (Pantheon, 57Stars, and Unigestion), Filter Capital and Innoven Capital.

The funds raised will be crucial for the firm’s global expansion efforts and supporting its mergers and acquisitions strategy.

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, said the company in a statement.

Capillary Technologies Founder and MD Aneesh Reddy said, “It has been an incredible journey over the past decade and a half. Commitment from marquee investors from Avataar’s LPs along with existing investors 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 preeminent loyalty company globally.”

Founded in 2012, Capillary Technologies has presence across the US, India, West Asia and Southeast Asia.

“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. 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,” said Mohan Kumar, managing partner at Avataar Ventures.

Capillary works with more than 250 brands including the likes of Tata, Puma, Shell, Al-Futtaim, Petron, Domino’s, Kanmo Group, and Marks & Spencer. With a reach of over 1 billion consumers and processing 5 billion annual transactions, the company has the backing of Warburg Pincus, Sequoia Capital, Avataar Ventures and Filter Capital.