Singapore’s Capillary Technologies gets $45m Series D

Filter Capital and Innoven Capital also participated, as did Avaatar LPs Pantheon Ventures, 57Stars, and Unigestion. It is the second investment led by Avaatar in as many weeks, following a USD 45m round for Indian bus tracking app operator Chalo.

Capillary provides retail companies with artificial intelligence and cloud-based SaaS products related to customer data and loyalty management services. It is active across apparel, hypermarkets, luxury goods, consumer packaged goods, hospitality, aviation, and fuel retail, among other categories.

The technology is used by more than 250 brands across some 30 markets globally, enabling over 100 loyalty programmes and touching some 1bn end-consumers with technology that facilitates around 5bn transactions a year. Clients include Tata Group, Puma, Shell, Domino’s, and Marks & Spencer.

The company claims to have seen exceptional growth in the past few years as brands prioritise customer loyalty as a strategy. The US has proven a standout growth market, with the local business said to have grown 3.5x since 2021 when Capillary acquired customer experience company Persuade. Last April, Capillary also acquired US loyalty technology provider Brierley.

“It has been truly remarkable witnessing Capillary’s business transformation over the past four years,” Mohan Kumar, a managing partner at Avataar, said in a statement.

“The strategic decision to diversify from Asia into the US and Europe, encompassing various consumer verticals beyond retail, has been nothing short of impressive. This move has catapulted Capillary into a leadership position in loyalty software.”

The fresh capital will be used to double down on North America and Europe, in part through further M&A activity. There will also be an effort to connect with a broader range of business types. The plan is to become the preeminent loyalty company globally.

Capillary has raised more than USD 120m, according to AVCJ Research. Previous investors include Warburg Pincus, Sequoia Capital India, Norwest Venture Partners, American Express Ventures, and Qualcomm Ventures.

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• Topics
• Southeast Asia
• South Asia
• North America
• Consumer
• Technology
• Support services
• Expansion
• Singapore
• India
• USA
• Avataar Venture Partners
• Filter Capital
• Innoven Capital
• Unigestion
• 57 Stars
• Pantheon