Capillary Technologies India Ltd, which is backed by venture capital firm Avataar Venture Partners and growth-stage investment firm Filter Capital, has agreed to acquire US-based SessionM from Mastercard for $20 million (around Rs 181.7 crore) in cash, subject to customary closing adjustments.
The Bengaluru-headquartered loyalty SaaS firm will buy 100% of SessionM through its subsidiaries, according to a stock-exchange disclosure. The acquisition strengthens Capillary’s presence in North America, where SessionM derives over 70% of its revenue.
SessionM reported revenue of $50.5 million in calendar year 2025 and serves more than 40 enterprise customers across sectors such as food and beverage, retail and airlines.
Capillary said the deal will expand its access to Latin America and add to its Asia-Pacific portfolio. It expects to integrate around 60 customers from SessionM and Kognitiv over the next 24 to 36 months, with stable post integration operations targeted by 2029, the company said.
The deal comes months after Capillary went public in November 2025. Venture investors Avataar and Filter Capital, which had earlier recalibrated their IPO exit plans, remain key shareholders.
Started in 2012 by IIT Kharagpur alumni Aneesh Reddy, Ajay Modani and Krishna Mehra, Capillary Technologies builds loyalty management and customer engagement software for enterprises through its SaaS platform. The firm has a team of more than 150 professionals in the US and over 800 employees worldwide. Anant Choubey and Sridhar Bollam are also among the co-founders of the firm.
Avataar had led Capillary’s Series D funding round in 2023, alongside its limited partners Pantheon, 57Stars and Unigestion. Filter Capital also participated in that round.
Capillary has been pursuing a consolidation strategy in the fragmented global loyalty technology market. Since 2021, it has acquired Persuade, Brierley and Kognitiv, aiming to migrate acquired customers onto its core platform to drive margin expansion and free cash flow generation.
With the addition of SessionM, Capillary’s combined annual recurring revenue is expected to cross $115 million, with a stronger tilt towards food and beverage, airlines and retail in North America.
