Capillary Technologies Acquires Kognitiv To Expand Global Footprint

IPO-bound enterprise tech startup Capillary Technologies has acquired Canada-based martech platform Kognitiv for an undisclosed amount.

In a statement, Capillary said that the deal will enable it to “significantly” expand its global footprint and strengthen its position in the North American market. The acquisition aligns with Capillary’s strategy of expansion through mergers and acquisitions, it added.

Capillary will leverage Kognitiv’ to enhance its tech stack and consumer engagement, as well as deliver “data-driven personalisation” across the customer lifecycle.

“Kognitiv’s expertise in omnichannel loyalty solutions and their presence in North America complements our global expansion strategy,” Capillary founder and CEO Aneesh Reddy said.

It is pertinent to note that Kognitiv is Capillary’s fourth acquisition in the customer engagement space since 2021. It entered the US market after in September 2021. In April 2023, it acquired Texas-headquartered Brierley+Partners. Just a few months later, for an undisclosed amount.

Founded in 2008, Kognitiv offers AI-driven solutions for businesses to retain customers. The company merged with Aimia Loyalty Solutions in 2020 to bolster its tech stack and diversify offerings. It claims to have more than 200 clients across 50+ global markets.

On the other hand, Capillary, founded in 2008 by Reddy, offers end-to-end customer engagement tools for brands to increase customer retention via personalised omnichannel communication. It also offers a customer data platform and reward network.

It claims to cater to more than 100 brands, including IndiGo, Domino’s Pizza, Pantaloons, Malabar Gold & Diamonds, Vishal Mega Mart, among others. Besides India, the startup also serves customers in the US, the Middle East, and the South East Asia.

Capillary last from Avataar Ventures, Filter Capital, and InnoVen Capital. Besides, it also counts Sequoia Capital And Warburg Pincus among its key investors.

The acquisition comes at a time when the SaaS company has restarted preparations for its $200 Mn IPO, after dropping its previous public listing plans in 2021. Earlier this year, Inc42 reported that Capillary technologies was looking by June 2025.

It plans to raise anywhere between $12 Mn to $24 Mn via fresh issue of shares, while the remaining component will be an offer for sale (OFS).

As per Tofler, the company’s India arm managed to trim its consolidated net loss to INR 59.4 Cr in the financial year ended March 2024 from INR 87.7 Cr in FY23. Operating revenue grew more than 82% to INR 590.2 Cr in FY24 from INR 322.7 Cr in the previous year.

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