Capillary Technologies, a Bengaluru-based customer engagement firm, has acquired Canada’s Kognitiv, a provider of omnichannel loyalty solutions, as it expands aggressively in North America and gets ready for an IPO.
This is Capillary’s fourth loyalty acquisition since 2021. The deal further solidifies the AI-powered customer engagement firm’s global presence, especially in the US, Australia and New Zealand (ANZ), Southeast Asia (SEA), and the UAE. Terms of the deal are not disclosed but multiple sources have confirmed that Capillary is acquiring only the performing assets of Kognitiv which had filed for creditor protection in the US after accumulating over USD 10 million (~INR 86 crore) in liabilities.
Strategic Fit and Market Expansion
Founded in 2008, Kognitiv is known for its AI-driven omnichannel loyalty programs and has over 30 enterprise brands as clients including PetSmart, Hallmark, Yuu Rewards, Kirkland’s, Curaleaf, Sharjah Co-op and Leading Hotels of the World. The company operates in over 20 countries and had merged with Aimia’s Loyalty Solutions business in 2020 to strengthen its technology stack and service capabilities.
Aneesh Reddy, Co-founder and CEO of Capillary Technologies said, “Kognitiv’s omnichannel loyalty expertise and their presence in North America fits well with our global expansion plans. This is a big moment for Capillary to change the way brands build customer relationships.”
Tim Sullivan, CEO of Kognitiv said, “Joining Capillary is an exciting new chapter for us. Our shared vision of inspiring lifetime loyalty through deeper customer relationships makes this a natural fit.”
Deepening Capillary’s Loyalty Stack
This acquisition builds upon Capillary’s prior strategic deals — including US-based Persuade (2021), Texas-headquartered Brierley+Partners (2023), and Tenerity’s Digital Connect Assets (now Rewards+) — all part of its aggressive M&A playbook to become a dominant force in global loyalty management.
Jim Sturm, President of North America at Capillary Technologies, noted, “With Kognitiv joining our ecosystem, we’re not just expanding our global reach — we’re enhancing our technological capabilities to offer hyper-personalized, data-driven customer experiences.”
Financial Performance and IPO Trajectory
This is a big one for the company which is going to file its DRHP by June 2025 and list in India. The IPO is expected to raise USD 12-24 million (~INR 103 – 205 crore) through fresh issue and rest through OFS.
As per its annual report, Capillary made a net profit of INR 13 crore in FY25 vs INR 59 crore loss in FY24. Operating revenue grew 24% to INR 598 crore in FY25 from INR 483 crore in FY24.
Capillary Technologies, which raised USD 140 million (~INR 1,198 crore) in an extended Series D round last year from investors including Avataar Ventures, Filter Capital, and Pantheon, had earmarked a portion of the funds for ESOP payouts, signaling its intent to retain top talent amid expansion.
Global Clientele and Recognition
Today, Capillary Technologies serve over 100 enterprise clients across 30 countries — more than 15 Fortune 500 companies. Its clients include Tata Group, PUMA, Shell, Domino’s, IndiGo, Pantaloons, Malabar Gold & Diamonds. The company AI driven loyalty solutions are used across retail, hospitality, healthcare and financial services.
Being included in the Forrester Wave Loyalty Solutions Report and being recognized by Gartner earlier speaks volumes about the credibility in the crowded SaaS loyalty tech space.
A Big Leap Forward
Kognitiv is more than a geographic or portfolio expansion — it’s a calculated move to cement Capillary’s position as a global loyalty leader. As the company heads towards an IPO and deepens its AI stack, this could be the foundation of Capillary moving from a regional SaaS player to a full stack global loyalty player.
Only time will tell if this momentum carries through post IPO, but for now, Capillary Technologies is checking all the boxes — strategically, financially, and operationally. For more details related to IPO GMP, and Live Subscription stay tuned to IPO Central.