Capillary bought Tenerity's Digital Connect as its third US loyalty acquisition

Capillary Technologies is a Bengaluru-founded end-to-end customer loyalty and engagement SaaS platform working with 250+ brands.

That only a full suite — platform, consulting, programme design, analytics, rewards network and marketing communications — wins global loyalty

$45 Mn Series D from Avataar Ventures and its limited partners, Filter Capital and Innoven Capital, weeks before the deal; Digital Connect terms undisclosed.

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.

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.

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.

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.

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.

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.