Capillary Technologies, a startup specializing in customer engagement and loyalty software services, has recently bolstered its Series D funding round, amassing a total of $140 million. The augmentation of this round was facilitated by a $95 million infusion garnered through secondary transactions, strategically tailored to provide exits for existing stakeholders and employees alike. Initially seeded with $45 million, Capillary is now eyeing an IPO in the Indian market within the ensuing 18 months.
Of the recent funding, $95 million stemmed from secondary deals, wherein incumbent investors divested their shares to fresh participants, orchestrating a strategic exit for early patrons such as American Express and Warburg Pincus. This maneuver also resulted in approximately $20 million in returns for former and current employees. Significantly, these secondary transactions were executed at a premium.
Augmenting this influx, an additional $6 million in equity funding has been secured from distinguished angel investors. Capillary Technologies intends to allocate these resources toward its generative artificial intelligence (GenAI) endeavors and to bolster its presence in the US and European markets, fortifying its foothold in the realm of customer loyalty.
Bolstering its global footprint, Capillary Technologies has experienced noteworthy expansion in the United States, where it presently garners 65% of its revenues. Boasting a platform renowned for powering over 100 loyalty programs spanning more than 30 nations, the company asserts outreach to a consumer base exceeding a billion individuals. Claiming an annual revenue run rate (ARR) in the vicinity of $75 million, Capillary Technologies has earmarked $20 million of the raised capital for Employee Stock Ownership Plan (ESOP) disbursements.
“Our employees serve as the cornerstone of Capillary’s triumph, and we are resolute in acknowledging their unwavering dedication and toil. The ESOP allotment underscores our commitment to nurturing a culture of ownership and accountability within our ranks,” affirmed Aneesh Reddy, Founder & MD.
Mohan Kumar, Managing Partner at Avataar Ventures, expressed enthusiasm about Capillary Technologies’ enduring growth and innovation. As an investor, Kumar extolled the company’s vision and expressed confidence in its capacity to revolutionize the customer loyalty domain. He commended the expanded Series D funding and the dedication to employee ownership as testaments to Capillary’s robust leadership and potential for sustained prosperity.
