Capillary Technologies bolsters loyalty solutions with the acquisition of Tenerity’s Digital Connect. The Bengaluru-based SaaS startup aims to strengthen its presence in the US and European markets by incorporating Digital Connect’s reward ecosystem. Capillary now offers a comprehensive suite of end-to-end intelligent loyalty solutions, cementing its position as a leader in the industry.
Bengaluru-based SaaS startup Capillary Technologies has acquired Tenerity’s product Digital Connect after raising $45 million in a Series D funding round. The financial details of the deal have not been disclosed. By acquiring Digital Connect, Capillary aims to strengthen its presence in the US and European markets by incorporating the reward ecosystem enabled by the platform. This marks Capillary’s third acquisition in the US.
Tenerity, a US-based loyalty and engagement company with expertise in artificial intelligence (AI) and analytics, allows businesses to engage customers with offers and generate additional revenue through its product Digital Connect. Following the acquisition, Tenerity will continue to operate independently while Digital Connect will be rebranded as Rewards+ and become the fourth product on Capillary’s platform, alongside Engage+, Loyalty+, and Insights+.
Capillary claims to be the only company offering a comprehensive suite of end-to-end intelligent loyalty solutions, which includes a technology platform, consulting, loyalty program design, analytics, a rewards network, and marketing communications.
The US, UK, and Indian-based Digital Connect teams will work with Persuade and Brierley, which Capillary already owned (bought in 2021 and April 2023, respectively). Capillary acquired Brierley to expand its customer loyalty platform, enhance product capabilities, and strengthen partnership networks. Capillary, a company that was founded in 2012, offers a complete platform for client loyalty, giving unified and cross-channel tactics for an omnichannel, personalized experience. It serves over 250 brands, including Tata, Shell, PUMA, Petron, Domino’s, and Marks & Spencer, and operates in the US, India, the Middle East, and South East Asia.
Capillary Technologies had planned to go public and had filed its draft red herring prospectus (DRHP) for an IPO with the Securities and Exchange Board of India (SEBI) in December 2021. However, due to a global market downturn, the startup postponed its IPO. The latest funding round of $45 million was raised from Avataar Ventures and its limited partners, Filter Capital, and Innoven Capital.
In FY22, Capillary reported a standalone net loss of INR 22.2 crore compared to a profit of INR 16.7 crore in FY21. Its operating revenue for the fiscal year increased by 42% year-on-year to INR 163.3 crore.
