Bengaluru and Singapore-based Capillary Technologies, which provides customer loyalty and customer engagement solutions, has acquired US-based Customer Experience platform Persuade for an undisclosed amount.
This marks Capillary’s first US acquisition and fourth globally, marking its entry into North America. It has previously acquired multi-channel commerce platforms Sellerworx, and MartJack and ML platform Ruaha. It also holds minority stakes in Exclusife and WebEngage. With this acquisition and Persuade’s expertise, the company is also eyeing new verticals like airlines, automotive, and healthcare.
Currently operational in India, SEA, Middle East, China and some US cities, Capillary Technologies offers customer engagement, loyalty and social CRM solutions that help brands reward their loyal and frequent customers using discounts, points, etc. Its 400+ clientele includes Aditya Birla Fashion, PUMA, KFC, Pizza Hut, Domino’s Pizza and HP among others.
Founded in 2008 by Ajay Modani, Aneesh Reddy and Krishna Mehra, the company is backed by Warburg Pincus, Sequoia Capital, Avataar Capital, and Filter Capital and offers 100+ loyalty programmes, and has 120K+ stores and 500 Mn+ consumers.
The acquisition of Persuade will complement Capillary’s capabilities in customer loyalty programmes. “Persuade’s founders, John Tschida and Bill Jansen bring a deep understanding of customer loyalty with many decades of combined experience in the loyalty management space. They have crystallised their knowledge by building four highly successful loyalty companies including Persuade. Together, Persuade and Capillary strive for excellence in the global loyalty space,” Reddy stated.
Founded in 2011 by Tschida and Jansen, Persuade is a profitable company with clients from several Fortune 500 brands. It claims to have grown 300% in 2020 and is already surpassing the number in the first six months of 2021.
The full-stack customer experience company is a major player in the retail segment for loyalty and customer engagement products.
Recently, Indian fintech startup BharatPe also acquired loyalty platform PAYBACK for $27 Mn. Some prominent startups with loyalty programs include Paytm’s investment in multi-channel loyalty program M’Loyal, fintech Mobikwik’s Supercash, healthtech 1mg’s 1mg Cash, Zomato’s now-closed loyalty programme Piggyback, ecommerce giant Flipkart’s Flipkart Plus and Reliance Retail’s Reliance One, among others.
Some top startups in the space include US-based Tango Card and Thanx, Jakarta-based OVO, UK-based Yoyo Wallet among others.
Loyalty programmes are not a new thing, especially in the retail sector where brands incentivise users to buy from their particular store. According to a report, the global loyalty management market size is expected to grow from $7.6 Bn in 2020 to $15.5 Bn by 2025, at a CAGR of 15.3%.