Capillary Nets $95 Mn In Secondary Fundraise

SUMMARY

Of the total funding in this round, $20 Mn is earmarked for the ESOP programme

The company raised the first instalment of the Series D funding worth $45 Mn in June last year, which was led by the same investor

The 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

Customer loyalty and engagement solutions provider Capillary Technologies has extended its Series D funding round to $140 Mn (around INR 1,160 Cr), securing $95 Mn (around INR 787 Cr) in secondary transactions. Of this, $20 Mn has been earmarked for employee stock ownership plan (ESOP) payouts.

The Bengaluru-based startup will use the fresh funding to fuel its AI initiatives (generative loyalty), accelerate global expansion, and further strengthen its position as a pioneer in customer loyalty SaaS solutions space.

In June last year, Capillary raked in $45 Mn in the first tranche of its Series D fundraise from Avataar Ventures and its limited partners (Pantheon, 57Stars, and Unigestion), Filter Capital, and Innoven Capital.

Founded in 2012 by Aneesh Reddy, Capillary is an end-to-end customer loyalty platform that offers a view of consumers, and unified, cross-channel strategies that deliver a real-time omnichannel, personalised, and consistent experience for customers.

Reddy said, “Our employees are the backbone of Capillary’s success, and we are dedicated to rewarding their hard work and dedication. The ESOP allocation reflects our commitment to fostering a culture of ownership and accountability within our organisation.”

Capillary is backed by marquee investors like Avataar Ventures, Filter Capital, Sequoia Capital, Warburg Pincus and more.

Capillary claims to be powering over 500 loyalty programmes with a global presence across the US, Asia, Europe and the Middle East. As per the company, it currently caters to over 400 brands, and counts the likes of Tata, PUMA, Shell, Petron, Domino’s, Kanmo Group, and Marks & Spencer as its clients

The platform’s suite of products – Loyalty+, Engage+, Rewards+, and Insights+ – are AI-powered and sit on top of a powerful consumer data platform that has touched more than a billion end customers.

The company filed DRHP with SEBI in 2021 to go public. However, it deferred the IPO plans. It reported a net loss of INR 22 Cr in FY22 as against a net profit of INR 16.7 Cr in FY21.

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