Avataar Ventures, others led $45 M Series D funding secured by Capillary

Avataar Ventures, along with its LPs (Pantheon, 57Stars, and Unigestion), Filter Capital, and Innoven Capital, have closed a $45 million Series D funding round with Capillary Technologies, a company that provides technology solutions for loyalty management and customer engagement.

With this most recent round of funding, the business has now raised close to $150 million, including a $20 million round in February 2018. According to a press release from the company, the additional funding will support Capillary Technologies’ strategy of mergers and acquisitions as well as its efforts to expand globally.

Capillary is an end-to-end customer loyalty platform that offers a thorough view of consumers and unified, cross-channel strategies that deliver a real-time omnichannel, personalized, and consistent experience for customers. It is backed by companies like Warburg Pincus and Sequoia Capital. The ten-year-old business has operations in South East Asia, India, the Middle East, and the United States.

The company collaborates with over 250 brands, including Tata, PUMA, Shell, Al-Futtaim, Petron, Domino’s, Kanmo Group, and Marks & Spencer, and more than 100 loyalty programs.

As enterprise brands around the world increasingly prioritize customer loyalty to increase retention rates and lower customer acquisition costs, it has reportedly achieved remarkable success. Since acquiring Persuade in 2021, it asserts to have grown by 3.5 times in the US. More than a third of Capillary’s current revenue comes from the US. It also bought Texas-based Brierley+Partners earlier this year.

Capillary did not disclose its most recent earnings, but in FY22, its revenue from operations in India increased 42% to Rs 163.3 crore. In contrast to its profit in FY21, the company experienced losses during that time. In FY22, it had standalone losses of Rs 22.2 crore.