IPO-bound enterprise tech startup Capillary Technologies has acquired Canadian martech company Kognitiv for an undisclosed sum.
According to a statement from Capillary, the acquisition will allow the company to “significantly” broaden its global presence and bolster its foothold in the North American region. The move is in line with Capillary’s broader strategy of growth through mergers and acquisitions.
With Kognitiv’s capabilities, Capillary Technologies aims to strengthen its technology infrastructure and consumer engagement, while also offering “data-driven personalisation” throughout the customer journey.
“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.
Capillary Technologies’ latest acquisition of Kognitiv marks its fourth deal in the customer engagement sector since 2021. The enterprise tech firm made its entry into the US market by acquiring customer experience platform Persuade in September 2021. This was followed by the acquisition of Texas-based Brierley+Partners in April 2023, and later, the purchase of Tenerity’s Digital Connect product, also for an undisclosed sum.
Founded in 2008, Kognitiv provides AI-powered tools that help businesses retain customers. The company strengthened its technology capabilities and expanded its offerings through a 2020 merger with Aimia Loyalty Solutions. Kognitiv claims a client base of over 200 companies across more than 50 global markets.
Capillary, also founded in 2008 by Reddy, delivers comprehensive customer engagement solutions that help brands improve retention through personalised, omnichannel communication. Its offerings include a customer data platform and a loyalty rewards network. The startup serves over 100 brands such as IndiGo, Domino’s Pizza, Pantaloons, Malabar Gold & Diamonds, and Vishal Mega Mart, with operations spanning India, the US, the Middle East, and Southeast Asia.
Capillary last secured $45 million in a Series D round backed by Avataar Ventures, Filter Capital, and InnoVen Capital. Sequoia Capital and Warburg Pincus are also among its notable investors.
The acquisition comes as the SaaS company revives its plans for a $200 million IPO, having shelved an earlier attempt in 2021. As reported by Inc42, Capillary aims to file its draft red herring prospectus (DRHP) by June 2025. It intends to raise $12–24 million through a fresh issue of shares, with the remainder to be raised via an offer for sale (OFS).
According to data from Tofler, Capillary’s India entity reduced its consolidated net loss to INR 59.4 Cr in FY24 from INR 87.7 Cr in FY23. Additionally, the company’s operating revenue surged by over 82%, reaching INR 590.2 Cr in FY24, up from INR 322.7 Cr in the previous financial year.
