What the business is
Capillary Technologies is a Bengaluru-founded end-to-end customer loyalty and engagement SaaS platform working with 250+ brands.
Starting capital
$45 Mn Series D from Avataar Ventures and its limited partners, Filter Capital and Innoven Capital, weeks before the deal; Digital Connect terms undisclosed.
How it started
Founded in 2012, Capillary built an end-to-end loyalty platform across Asia and rolled up US capabilities: Persuade in 2021 and Brierley in April 2023, while its December 2021 DRHP filing sat deferred through the market downturn.
What happened
On 2023-06-08, weeks after the Series D, it announced the acquisition of Tenerity's Digital Connect — its third US acquisition — to be rebranded Rewards+ alongside Engage+, Loyalty+ and Insights+; Tenerity itself continues operating independently.
How it ended up
Capillary claimed it became the only company with a full suite of end-to-end intelligent loyalty solutions, with Digital Connect's US, UK and India team joining forces with Persuade and Brierley in the US.
What has to be true
US and Europe are where enterprise loyalty spend concentrates; buying an installed rewards network is faster than building one.
BFSI and telecom loyalty is a specialist vertical the acquisition opens without product R&D from scratch.
The incoming team joins Persuade and Brierley, concentrating three US acquisitions into one American operation.
What can be applied
When a category consolidates, the roll-up is the product: bolt on specialist teams and rebrand them into one suite before the IPO window reopens.
Aftermath
As of 2023-06-08 Digital Connect is being rebranded Rewards+ and integrated as Capillary's fourth product; Tenerity continues independently, and Capillary positions itself for expansion into the US, Europe and the BFSI/telecom vertical.
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