Capillary Technologies India is a Bengaluru-based SaaS company offering AI-led customer loyalty, CRM, rewards, and engagement solutions to enterprise clients across retail, CPG, BFSI, hospitality, and airlines. The company earns revenue through subscription-based SaaS products such as Loyalty+, Engage+, Insights+, Rewards+, and CDP. Its solutions are used by enterprises to manage omnichannel customer loyalty, personalise marketing, and improve consumer retention globally.

Key clients include ABFRL, Tata Digital, Abbott, Frontier Communications, and several Fortune 500 companies. Capillary has major delivery, R&D, and support centres in India, the US, Singapore, and the UK. These facilities manage platform development, AI models, customer onboarding, and global service delivery for over 390+ brands and 1.2+ billion consumers

The company’s product suite covers loyalty management, analytics, engagement automation, rewards distribution, CDP, and industry-specific modules. These products sit at the core of a customer’s lifecycle—from onboarding to retention, improving program ROI. Its orderbook spans enterprise clients across North America, APAC, and EMEA. Execution includes long-term multi-year SaaS contracts with strong stickiness and recurring revenue, supported by high platform migration success and acquisitions.

Capillary has strengthened its platform through inorganic moves like Persuade (2021), Brierley (2023), Digital Connect (2023), Kognitiv (2025). Expansion plans include continued US market consolidation, technology investments, and selective acquisitions funded through internal accruals, IPO proceeds, and debt if required.

Capillary employs 700+ people, serves clients across 13 global offices, exports mainly to the US and UK, and maintains a strong geographical mix led by the US. Major bankers include leading Indian and global financial institutions supporting operations and acquisitions.

MANAGEMENT & VISION

The management team aims to establish Capillary as a global leader in loyalty-tech, focusing on deepening vertical expertise and expanding horizontally across industries. Their near-term strategy includes increasing presence in North America, the world’s largest loyalty market, and leveraging acquisitions for rapid entry and customer consolidation. Long-term goals include scaling the hybrid SaaS platform, improving margins through centralised functions in India, and building a unified AI-led loyalty engine.

Management intends to fund future capex and expansion through a mix of IPO proceeds, internal cash flows, and strategic debt, depending on the timing and nature of acquisitions. A dedicated M&A function supports identification, diligence, and integration to ensure synergies and post-merger profitability.

INDUSTRY OVERVIEW

Capillary operates in the Global Loyalty Management & Engagement SaaS industry, which is valued at USD 16.6 billion in FY24 and is expected to grow to USD 26.8 billion by FY29, at a CAGR of 10%. North America is the largest market, followed by Europe and APAC. The APAC region alone is projected to grow at 18.7%, driven by digital adoption, e-commerce, and increasing consumer base.

India and Asia represent a consumer market of nearly 4 billion, offering substantial loyalty penetration opportunities. The US enterprise loyalty market is valued at USD 5 billion (2024), with 75–80% of players already using loyalty tools, many requiring modernisation. Global enterprise adoption is expected to grow between 5%–16.6% CAGR across regions.

Market leaders globally include Salesforce, Adobe, HubSpot, and Braze, though none are pure-play loyalty SaaS providers. Capillary therefore operates in a high-growth, fragmented market with strong demand for AI-driven personalization tools across retail, CPG, QSR, travel, and BFSI sectors.

MAJOR RISK FACTORS

1. Intense global competition
   Capillary competes with large CRM firms like Salesforce and niche loyalty platforms. Continuous innovation is essential, and inability to match technological advancements or pricing pressure may affect customer acquisition and revenue growth.
2. Rapid technology changes
   The loyalty-tech space is shifting towards AI-driven real-time personalization. Failure to update platforms, add automation, or modernize legacy acquired stacks can reduce competitiveness and impact long-term SaaS contract renewals.
3. Customer retention risk
   Enterprise clients contribute major recurring revenue. Any delay in renewals, contract cancellations, or reduction in loyalty budgets due to macroeconomic slowdowns may negatively affect margins and predictability of cash flows.
4. Cross-border regulatory and compliance challenges
   Operating across multiple regions exposes the company to data privacy, cybersecurity, and compliance risk. Different jurisdictions like the US, EU, and APAC require strict adherence, and breaches can lead to penalties and reputation loss.
5. Talent acquisition and retention
   The SaaS industry faces high demand for skilled engineers and product talent. Attrition, rising wages, or inability to retain key employees could affect product development speed and customer delivery capabilities.
6. Inorganic growth integration risks
   Capillary relies heavily on acquisitions to expand globally. If integration of platforms, cultures, or customer accounts fails, expected synergies may not be realized, affecting profitability and future acquisition plans.
7. Data security and privacy vulnerabilities
   Handling sensitive consumer data across industries poses cybersecurity risks. Any breach could trigger financial loss, legal issues, reputational damage, and stricter regulatory oversight, impacting operations and client trust.

STRENGTHS & OPPORTUNITIES

1. Strong AI-led loyalty product suite
   A comprehensive set of products—Loyalty+, Engage+, Insights+, Rewards+, and CDP—provides an end-to-end CRM and loyalty solution. This integrated suite creates high switching costs and long-term enterprise stickiness.
2. Leadership in global loyalty solutions
   Engaging 1.2+ billion consumers and powering 500+ loyalty programs, Capillary has proven scalability. Its presence across 13 offices gives it a global footprint unmatched by most loyalty-focused SaaS companies.
3. High-growth regional exposure
   With the US contributing the highest revenue and APAC projected to grow at 18.7%, Capillary is positioned to benefit from increasing digital engagement, e-commerce penetration, and enterprise adoption of loyalty platforms.
4. Successful M&A-driven expansion model
   Strategic acquisitions like Brierley and Kognitiv strengthen US and EU presence. The firm has spent ₹4,389 million on acquisitions in 5 years, demonstrating its capability in consolidation and synergy extraction.
5. Proven revenue scale and recurring model
   Revenue from continuing operations reached ₹5,982 million in FY25 with strong growth from US and UK markets. A SaaS subscription model ensures predictable, recurring inflows and strong future scalability.
6. Deep vertical-specific solutions
   Industry-tailored modules for retail, airlines, hospitality, BFSI, and CPG enable faster deployment and higher ROI for clients, supporting deeper penetration and upselling opportunities across sectors.