# Capillary Technologies

Capillary Technologies is an international SaaS technology company. Capillary's primary product is its cloud-based customer loyalty/customer engagement and e-commerce platform, Intelligent Loyalty. Capillary also offers loyalty and other marketing consulting services.
Capillary Technologies was founded in Bangalore in 2008. Today, Capillary is headquartered in Singapore and operates in several countries.

## History

Capillary Technologies was founded in August 2008 by Aneesh Reddy, Krishna Mehra, and Ajay Modani and initially headquartered in Bangalore, India. Reddy, Mehra, and Modani were each alumnus at ITC Limited, Microsoft Research, and Danieli, respectively.
In 2013, Capillary Technologies was used as a case study for "reverse innovation" published in Harvard Business Review.
In December 2016, Rajan Anandan, who at the time was Google's Vice President for Southeast Asia and India, joined Capillary's Board of Directors.
Co-founder Aneesh Reddy operated as Chief Executive Officer (CEO) of Capillary Technologies until 2022. In September 2022, Capillary Technologies announced that Sameer Garde would take over as the company's CEO and Reddy would transition to managing director. Garde resigned as CEO in March 2024 "due to personal reasons," and Reddy returned to the company's role as CEO.

### Expansion

Capillary Technologies operated primarily in India and in new or emerging markets in less-developed countries. In 2011, Capillary began looking toward established markets in more developed nations.

#### International growth

The company began expanding operations into China in July 2016 and, in September 2019, Capillary partnered with Veda Holding, a Saudi investment holding company, to expand to Saudi Arabia. To operate in the country, Capillary formed a Saudi-specific entity called Capillary Arabia.

#### United States and Europe

Capillary Technologies began expanding into the U.S. and European markets in 2021. That same year, Capillary acquired Persuade, a U.S. loyalty platform provider. In March 2023, Capillary Technologies and Texas-based Sabre Corporation announced they had signed an agreement to integrate the Capillary loyalty management solution into its airline and hotel platforms.
This announcement was followed by multiple acquisitions. In April 2023, Capillary acquired Brierley+Partners, a U.S. loyalty agency and loyalty program platform provider, and in June 2023, Capillary announced it had acquired the Digital Connect technology assets of Tenerity, a US-based engagement and rewards platform provider.
In May 2023, following Capillary's acquisition of Brierley and shortly before the acquisition of Tenerity's Digital Connect assets, Capillary Technologies raised an additional $45 million in funds. According to Capillary, this new round of funding will primarily help Capillary's plans to grow and expand further in North America and Europe.

### Funding

Capillary Technologies has raised multiple rounds of funding from investors since its inception.
* 2009: Capillary received $100,000 from the QPrize Business Plan Competition by Qualcomm.
* Sep 2012: Capillary raised $15.5 million from Sequoia Capital, Norwest Venture Partners & Qualcomm.
* Feb 2014: Capillary received $4 million from American Express in February 2014.
* Sep 2015: Capillary raised $45 million from Warburg Pincus, Sequoia Capital, and Norwest Venture Partners.
* Feb 2018: Capillary announced it raised $20 million in several tranches in 2017 and 2018 from existing investors Warburg Pincus and Sequoia Capital.
* Dec 2021: Capillary Technologies India filed draft papers to raise Rs 850 crore (approximately $103.1 million) through public issue.
* May 2023: Capillary raised $45 million from Avataar Ventures along with its limited partners (Pantheon, 57Stars, and Unigestion), Filter Capital, and Innoven Capital.
* Feb 2024: Capillary announces it raised $95 million in Secondary Deals from investors including The Evolvence Group, who are limited partners of Capillary's major investor Avaatar Ventures, and 57Stars, Pantheon, Unigestion, and new angel investors, including Ajay Gupta, former senior partner at McKinsey & Company, and Hal Brierley, founder of Brierley+Partners.

### Acquisitions

Capillary acquired the e-commerce software platform MartJack in September 2015, supported by a $45 million funding led by Warburg Pincus. In October 2016, Capillary acquired SellerWorx, another e-commerce services and technology company.
In September 2021, Capillary Technologies acquired Persuade, a US-based loyalty firm. In April 2023, Capillary acquired Brierley+Partners (known generally as Brierley), a loyalty agency and platform provider based in Frisco, Texas. Then, in June 2023, Capillary acquired the technology assets of Tenerity, a US-based rewards and engagement platform provider.

## Intelligent Loyalty Platform

Capillary Technologies' primary product is its cloud-based SaaS platform Intelligent Loyalty. The Intelligent Loyalty platform includes modules with features for loyalty programs, customer engagement, data analytics, etc.

### Product development

As of 2020, Capillary Technologies used GitHub as the core for the end-to-end CI/CD architecture of the company's platform.
In 2023, Capillary launched AskAira, an AI-powered research assistant, as part of its loyalty platform. AskAira utilizes OpenAI's generative AI language models.