Bengaluru-based SaaS startup Capillary Technologies has announced the acquisition of Tenerity’s product Digital Connect, just weeks after raising $45 million in a Series D funding round. The financial details of the deal have not been disclosed.
The acquisition of Digital Connect aims to strengthen Capillary’s presence in the US and European markets by leveraging the reward ecosystem enabled by the product. 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, offers Digital Connect to enable companies to engage customers with memorable brand experiences and generate incremental revenue. Following the acquisition, Tenerity will continue to operate independently.
After the deal, Digital Connect will be rebranded as Rewards+ and become the fourth product on Capillary’s platform, joining Engage+, Loyalty+, and Insights+. Capillary stated that it will be the only company offering an end-to-end suite of intelligent loyalty solutions, including a technology platform, consulting, loyalty program design, analytics, a full rewards network, and marketing communications.
Digital Connect’s team is based in the US, UK, and India. In the US, the Digital Connect team will join forces with Capillary’s previously acquired companies, Persuade and Brierley.
Capillary had previously acquired Brierley to expand its customer loyalty platform, enhance product capabilities, and strengthen partnership networks. The addition of Digital Connect’s Rewards network further solidifies Capillary’s position as a leader in loyalty solutions, according to Sameer Garde, the CEO of Capillary.
Founded in 2012, Capillary offers an end-to-end customer loyalty platform that provides a unified and cross-channel strategy, delivering personalized omnichannel experiences. The startup works with over 250 brands, including Tata, Shell, PUMA, Petron, Domino’s, and Marks & Spencer.
Capillary’s global expansion is gaining momentum after a decade of robust growth in Asia. The specialized focus of Digital Connect on the BFSI/telecom industry will accelerate Capillary’s entry into a new vertical, as stated by Aneesh Reddy, the founder and MD of Capillary.
Capillary had filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in December 2021 for an IPO. However, the startup postponed its IPO plans due to market conditions.
The recent funding round was led by Avataar Ventures, with participation from Filter Capital and Innoven Capital.
