Capillary raises $20 million from Warburg, others

BENGALURU: Enterprise software company Capillary Technologies Pvt. Ltd has raised $20 million in a new round of funding from private equity firm Warburg Pincus, venture capital firm Sequoia Capital and existing investors, the company said in a statement on Wednesday.

Capillary offers cloud Software as a Service (SaaS) to retail and consumer goods companies in India and abroad. It will use the fresh round of funding to strengthen product development capabilities, especially around artificial intelligence and machine learning.

The company will also invest money to build software for potential customers under its newly launched consumer products and goods (CPG) vertical. Under the CPG vertical, Capillary provides software for automating promotional campaigns, and a full stack of e-commerce software solutions for consumer brands.

Aneesh Reddy, chief executive officer, Capillary Technologies, said in a statement that more than 70% of these funds would be used to fund research and development around AI and to expand presence in overseas markets.

“We’re also looking to further strengthen our presence in China and the Middle East, besides penetrating further into Southeast Asia. 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 adjacent industry, consumer goods (FMCG), which has a close affinity to retail,” said Reddy.