Capillary To Acquire Mastercard's Loyalty Biz, SessionM, For $20 Mn
Listed SaaS company Capillary Technologies yesterday announced that it has signed a definitive agreement to acquire Mastercard’s customer loyalty and rewards business SessionM in an all-cash deal worth $20 Mn (₹181.8 Cr).
The company expects to close the deal within the next six months. As part of the transaction, a “specialised” team within SessionM will join Capillary to ensure continuity and “preservation” of expertise.
In a filing with the exchanges, Capillary Technologies said that the planned acquisition is part of its broader plan to strengthen presence in the North American and Latin American markets. Besides strengthening product stack, the SaaS major also sees the consolidated entity leveraging SessionM’s clientele to unlock efficiencies in the loyalty space.
“By bringing SessionM into our portfolio, we are not just expanding our footprint across the globe; we are further strengthening our loyalty capabilities to deliver one of the industry’s most comprehensive offerings.
This is the homegrown startup’s fifth acquisition in the past five years. It entered the US market in 2021 after acquiring customer experience company Persuade. Two years later in 2023, it acquired Texas-headquartered Brierley+Partners. Just a few months later, Capillary also snapped up Tenerity’s product Digital Connect for an undisclosed amount.
Most recently, the company acquired Canada-based martech platform Kognitiv for an undisclosed amount last year.
Founded in 2011, SessionM is a cloud-based customer loyalty and engagement platform that helps brands create customer profiles, personalise marketing campaigns, and manage loyalty programs. It integrates data from multiple sources to stitch targeted insights to increase customer retention.
The company was subsequently acquired by Mastercard in 2019.
On the other hand, Capillary, founded in 2008 by Reddy, offers end-to-end customer engagement tools for brands to increase customer retention via personalised omnichannel communication. It also offers a customer data platform and rewards network.
The SaaS company claims to cater to more than 115 customers across 47 countries, including names such as IndiGo, Domino’s Pizza, Pantaloons, Malabar Gold & Diamonds, among others.
Capillary Technologies made a lacklustre debut on the bourses in November last year. Shares of the company listed at ₹560 apiece on the BSE, a discount of 2.9% to the issue price. On the NSE, the stock listed at ₹571.90 per share, nearly 1% below the issue price of ₹577.
On the financial front, the SaaS major reported a 22% decline in its consolidated net profit to ₹8 Cr in Q3 FY26 as against ₹10.3 Cr in the year-ago period. Meanwhile, revenue from operations rose 15.7% YoY to ₹184 Cr during the quarter under review.
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