Technology Money

Capillary raises $45M from Warburg Pincus, others

2 Sep, 2015

Bangalore-based Capillary Technologies Pvt Ltd, a SaaS-based CRM solutions provider, has secured around Rs 300 crore ($45 million) in a fresh round of funding led by private equity firm Warburg Pincus.

Its existing investors Sequoia Capital and Norwest Venture Partners have also participated in the round, The Economic Times reported citing the company's founder.

It added that the fresh round of investment has more than doubled the valuation of the company to about Rs 1,200 crore and that Capillary has already used the funds to acquire two startups: MartJack, a digital commerce solution company owned by Reasoning Global eApplications and machine learning startup Ruaha Labs.

The company had also picked up a minority stake in customer satisfaction management firm CloudCherry recently.

An email sent to Capillary's co-founder and CEO Aneesh Reddy and to Warburg Pincus spokesperson to know more about the investment did not elicit a response till the time of filing this article.

Capillary was set up in August 2008 by IIT Kharagpur alumni Reddy, Krishna Mehra and Ajay Modani. It is into cloud-based software solutions that help retailers engage with customers through mobile, social and in-store channels.

Early this year, InnoVen Capital (formerly SVB India, a venture debt arm of Silicon Valley Bank), which was recently acquired by Singapore government's investment arm Temasek, invested an undisclosed amount in Capillary.

In July 2014, Capillary had raised $14 million in its Series B round of funding led by existing investors Sequoia Capital and Norwest Venture Partners (NVP). This round came barely five months after the firm netted $4.5 million in funding from American Express Ventures.

This was preceded by a $15.5 million in its Series A round of funding from Sequoia, NVP and Qualcomm Ventures in 2012.

Incubated by IIT Kharagpur with a soft loan of Rs 15 lakh, Capillary had raised its first round of angel funding from Harminder Sahni, Naresh Malhotra and Qualcomm ($100,000 as the winner of QPrize). In January 2011, it raised a second round from Sahni and Malhotra besides new investors Rajan Anandan and Venkat Tadanki, along with a few others. The company had paid back the incubation loan to IIT Kharagpur in February 2011, after it became profitable in mid-2010.

Capillary has offices in India (Delhi, Bangalore and Mumbai), Singapore, the UAE (Dubai), the UK (London), the US (California), and South Africa (Johannesburg).

For Warburg Pincus, this is the third deal this year after it invested in Piramal Realty and Ecom Express and raised its exposure to the new generation technology space. The PE firm had previously backed Quikr and CarTrade in the consumer internet space.