Update: Capillary Technologies' Series D round expands to $140 Mn

Update:  Capillary Technologies announced today the expansion of its Series D round to $140 million, with $20 million earmarked for Employee Stock Ownership Plan (ESOP) payouts.

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.

Original story follows:

Customer loyalty and engagement technology solutions provider Capillary Technologies is all set to raise $90-100 million in a secondary round, sources aware of the development told Entrackr.

“Existing investors are selling their stakes in Capillary and this is an extension to the previous round,” said one of the sources requesting anonymity.

In June 2023, Capillary announced the closure of its $45 million series D round from Avataar Ventures along with its LPs (Pantheon, 57Stars, and Unigestion), Filter Capital, and Innoven Capital.

Capillary offers a comprehensive view of consumers, and unified, cross-channel strategies that deliver a real-time omnichannel, personalised, and consistent experience for customers. It has a presence across the United States, India, the Middle East, Asia, et al.

Founded by Aneesh Reddy, Krishna Mehra, and Ajay Modani, the company works with over 100 loyalty programs, and over 250 brands including the likes of Tata, PUMA, Shell, Al-Futtaim among others.

As per sources, Capillary is likely to close this transaction soon.

Queries sent to Capillary did not elicit an immediate response. We’ll update the story in case we hear from them.

Earlier, Capillary had claimed that the US accounts for more than a third of its revenue. The firm also acquired three companies in the US – Persuade, Brierley+Partners, and Tenerity’s Digital Connect.

While Capillary is yet to disclose its FY23 financial results, it reported Rs 223 crore in revenue from operations during FY22. The firm’s losses also jumped from Rs 22.8 crore to Rs 100 crore during  FY22.