Software-as-a-service startup Capillary Technologies on Thursday said that it has bought Tenerity’s Digital Connect Assets, marking its third acquisition after over two months.
However, the company did not disclose the financial details of the transactions.
Capillary Technologies looks to strengthen its position in key markets like US and Europe by leveraging Digital Connect’s network of rewards ecosystem, the company said in a statement.
The acquisition comes just in a week after Capillary Technologies raised $45 million in a Series D funding round from investors like Avataar Venture Partners along with its limited partners Pantheon, 57Stars, and Unigestion. It also raised capital from Filter Capital and venture debt platform Innoven Capital in the latest funding mop-up.
Post-acquisition, Digital Connect will be rebranded to Rewards+. The platform will be Capillary’s fourth product alongside Loyalty+, Engage+, and Insights+ and will help the company to offer end-to-end loyalty solutions, the statement added.
Digital Connect helps companies engage customers and to make their brand memorable in a bid to surge revenues. It has built rewards networks for clients in the BFSI/telecom industry. Its team is based out of the US, UK and India.
The acquisition will help Capillary expand in the US and Europe with the Digital Connect team, joining its previous acquisitions of Persuade and Brierley. It had acquired Persuade in 2021 and Brierley in April 2023.
"Digital Connect’s specialized focus on the BFSI/telecom industry will accelerate our entry into a new vertical,” said Aneesh Reddy, founder and managing director, Capillary Technologies.
Capillary, founded in 2012 by Reddy, provides loyalty management and customer engagement technology solutions. Its client roster includes Tata, PUMA, Shell, Al-Futtaim, Petron, Domino's, Kanmo Group, and Marks & Spencer. It has previously raised capital from investors like PE firm Warburg Pincus, Sequoia Capital and Filter Capital.
