Capillary Technologies raises around $20 M from Warburg Pincus, Sequoia CapitalNeha Jain
The company is looking to deepen its Asia penetration and strengthen its product portfolio.
Cloud-based software solutions company Capillary Technologies on Wednesday announced that it has raised approximately $20 million over the past year from its existing investors, which include Warburg Pincus and Sequoia Capital.
With these funds, Capillary expects to strengthen its new product development, powered by artificial intelligence and machine learning, catering to Asia and other upcoming emerging markets. The company also plans to invest behind the newly launched consumer goods vertical with its industry-leading solutions.
Set up in 2008, Capillary Technologies was bootstrapped for the first three years. In September 2012, Sequoia Capital, Norwest Venture Partners (NVP) and Qualcomm Ventures together invested $15.5 million in a Series-A round, helping the company expand its offerings into healthcare and hospitality.
Sequoia and NVP continued to back the company by investing $14 million in a Series-B round in July 2014.
In September 2016, the company raised $45 million in a Series-C round led by private equity firm Warburg Pincus, along with existing investors.
Aneesh Reddy, Co-founder and CEO, Capillary Technologies said, “We have a great partnership with our investors, who continue to believe in our vision and expansion plans. More than 70 percent of these funds would be devoted to research and development powering all our products with AI. We’re also looking to further strengthen our presence in China and the Middle East, besides penetrating further into Southeast Asia.”
China expansion is in the cards this year. “We will soon be opening our second office in China at Guangzhou and then another at Beijing later this year. Going beyond retail, we are expanding into the adjacent industry - Consumer Goods (FMCG) which has a close affinity to retail. We are well-poised with our solutions and innovations to help the consumer goods brands reach and effectively engage with their customers (retailers) and end consumers through digitisation,” he added.
Commenting on the investment, Vikram Chogle, Warburg Pincus, said, “There were two key elements of the opportunity that caught our attention at the time of Warburg Pincus’ first investment in Capillary - the ability to back a talented and passionate entrepreneur in Aneesh, and the core Capillary product’s capacity to deliver a superior value proposition to a customer base with an unmet need. Since Warburg Pincus' initial investment, Capillary has established a clear leadership position in the market and emerged as a preferred partner for brands and retailers throughout the region. We are pleased to continue to be a part of the company’s journey as the team further scales the business.”
In less than 10 years, Capillary’s solutions have been used by over 300 brands across 25,000 stores in over 30 countries to enable easy and seamless consumer experiences.