Capillary Technologies has expanded its Series D funding to accomodate $140 million round

Capillary Technologies has revealed today that it has expanded its Series D funding to $140 million, with an allocation of $20 million designated for Employee Stock Ownership Plan (ESOP) payouts.

This additional investment will support Capillary’s AI endeavours, particularly in generative loyalty, expedite its global expansion efforts, and further solidify its leadership in the customer loyalty Software as a Service (SaaS) solutions sector.

According to sources familiar with the matter, customer loyalty and engagement technology provider Capillary Technologies is poised to secure $90-100 million in a secondary round.

“One of the sources, who preferred to remain anonymous, stated that existing investors are divesting their stakes in Capillary, extending the previous funding round,” noted one of the sources.

In June 2023, Capillary announced the successful closure of its $45 million Series D round from Avataar Ventures, its limited partners (Pantheon, 57Stars, and Unigestion), Filter Capital and Innoven Capital.

Capillary offers a holistic view of consumers and unified, cross-channel strategies enabling real-time, personalized, omnichannel customer experiences. The company operates in various regions, including the United States, India, the Middle East, and Asia.

Established by Aneesh Reddy, Krishna Mehra, and Ajay Modani, Capillary partners with more than 100 loyalty programs and boasts associations with over 250 brands, such as Tata, PUMA, Shell, and Al-Futtaim.

According to sources, Capillary is expected to finalize this transaction imminently.

Enquiries made to Capillary have yet to receive a response. Any updates from the company will be incorporated into the story.

Previously, Capillary Technologies disclosed that the US contributes to over a third of its revenue. Additionally, the company acquired three US-based firms – Persuade, Brierley+Partners, and Tenerity’s Digital Connect.

While Capillary has not disclosed its financial results for FY23, it reported revenue from operations of Rs 223 crore during FY22. However, the company’s losses surged from Rs 22.8 crore to Rs 100 crore during FY22.