Capillary Technologies look towards Warburg & Co to fund Rs 285 crore


Seven year old software maker, Capillary Technologies is in discussions to rise around $45 million (approx. Rs 285 crore) funding that is led by Warburg Pincus, the private equity firm, claim three people with knowledge about the development. One of them claimed that it is a big negotiation that Warburg is leading.

After the third round of institutional fund raising, the valuation of Capillary Technologies is estimated to be $170 to $180 million that translates to Rs 1,080 crore to Rs 1,140 crore, claimed another source.

However, there is no official confirmation by the CEO Aneesh Reddy or Capillary Technologies. A spokesperson from Warburg Pincus also did not comment on the matter.

This year, the huge investments have been focused primarily on the consumer interest segments of the market such as online to offline businesses, e-tailing and sectors such as software. The exceptions are Manthan, Freshdesk and Capillary. So far, Capillary managed to rise Rs 180 crore from the investors including Qualcomm Ventures, Norwest Venture Partners, American Express Ventures and Sequoia Capital India. The fund-raising round of the firm held in July 2014 valued it at s 600 crore.

Capillary Technologies was founded by a trio of IIT Kharagpur graduates – Aneesh Reddy, Ajay Modani and Krishna Mehra. The clients of Capillary Technologies include VLCC, Pizza Hut, Puma and many others. As the retailers look forward to create a seamless experience for the buyers across the websites, stores and mobile phones, they seek the help of technology providers such as Capillary for the solutions that engage both the online and offline customers.

Capillary started with its operations in Kolkata before it moved to Bengaluru in the year 2009. The company merged both customer relationship management and data analytics on a single platform.

Kate Leggett, an analyst at Forrester Research wrote in a recent blog post that they predict that the companies will make use of the insights from the CRM data to acquire more profitable customers via better targeting that will reduce the cost of acquisition in the early stages of the relationship itself to increase the wallet share by means of retention, recovery programs and loyalty.




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