Capillary Technologies, which offers customer relationship management software and marketing analytics for retailers, said it has raised $45 million in a Series D funding round led by Avataar Ventures and its LPs Pantheon, 57Stars and Unigestion.
The funding round, a mix of equity and debt, also witnessed participation from Filter Capital and InnoVen Capital.
The company said it will use the capital to expand its global footprint and for mergers and acquisitions.
“With this new funding, we are poised to expand our footprint in North America and Europe and pursue strategic acquisitions that align with our vision of becoming the preeminent loyalty company globally,” said Aneesh Reddy, founder of Capillary Technologies.
In its fifth acquisition globally and second in the United States, Capillary acquired US-based Brierley in April. Its other acquisitions include Persuade, Sellerworx, Ruaha Technology Labs, and Martjack.
Capillary Technologies said in a statement that it has witnessed exceptional growth in the US, expanding 3.5 times since the acquisition of Persuade in 2021. The US now accounts for over a third of Capillary’s revenue.
Capillary claims to be working with over 250 brands in over 30 countries, including Aditya Birla, Kanmo Group, Marks & Spencer, Tata, PUMA, Shell, and Domino’s. According to data from Tracxn, the company has raised funding of $100 million across eight rounds so far.
Capillary’s funding comes at a time when overall funding in Indian startups has dramatically slowed down. Indian startups raised $3.36 billion in the first quarter of 2023, down 72% from last year, according to data from DealStreetAsia DATA VANTAGE’s latest report India Deal Review: Q1 2023.
At this run rate, Indian startups are expected to raise just over $13 billion in 2023.
In comparison, startups had raised $12 billion in the first quarter of 2022 alone. For the entire 2022, startup fundraising stood at $26.5 billion, down sharply from the $46 billion raised in 2021.
Avataar Ventures, a B2B and SaaS-focused venture capital firm also participated in the $26.25 million Series D funding round of Chalo Mobility recently. Some of its other portfolio companies include Amagi, RateGain, Zenoti, Algonomy and Tech Sense.