Capillary Technologies, the Singapore-based social CRM company, has raised a $45 million Series C to fuel its evolution into a omnichannel retail platform. The round was led by Warburg Pincus with participation from returning investors Sequoia Capital and Norwest Venture Partners and brings Capillary’s total funding so far to $79.1 million.
Most of the capital is earmarked for the acquisition of e-commerce software platform MartJack, which significantly expands Capillary’s online retail capabilities. Capillary also announced the purchase of Ruaha Labs, a machine learning startup.
Co-founder and chief executive officer Aneesh Reddy says that while Capillary already had a strong portfolio of cloud-based software for offline retail stores, the company realized that it needed to expand its e-commerce offerings, too. This ensures that clients stick with Capillary not only after they launch online stores, but also when they began to explore O2O strategies.
“Almost every offline retailer is realizing that business is now omnichannel. That’s where MartJack becomes a very important part of the growth story for Capillary,” Reddy tells TechCrunch. He adds that Hyyderabad-based MartJack and Capillary only had a few overlapping customers and will continue to operate as separate units.
The combined company claims 250 large enterprise clients as well as about 600 to 700 small retailers and SMBs. Capillary’s software, which integrates with point-of-sale devices, has served over 150 million customers and processed about $8 billion in gross merchandise volume, or about 500,000 transactions per day.
Capillary is currently targeting expansion in India, China, the Middle East, Southeast Asia, and the United States. Increasing its SaaS offerings means that Capillary now competes more closely with companies such as SAP, Oracle, and Salesforce. Reddy says that Capillary differentiates by integrating all its services into one platform, which saves SMBs the headache of purchasing multiple licenses and also makes it easier to implement. For countries outside of the U.S., Capillary also has the advantage of being localized for more languages and payment gateways.
“We want to be the one digital tool that any retailer needs,” says Reddy. “With the MartJack acquisition, a marketing digital guys in any retailer or SMB will have one thing that lets them do CRM, analytics, campaigns, e-commerce, everything. That’s the main advantage people sign up with us for.”