In a significant move set to reshape the customer loyalty and engagement landscape, Bengaluru-based SaaS giant Capillary Technologies has announced its acquisition of SessionM, Mastercard’s well-known customer engagement and loyalty platform, for a reported $20 million. This strategic takeover marks a pivotal moment for Capillary, solidifying its position as a global leader in an increasingly competitive market.
SessionM, acquired by Mastercard in 2019 for an undisclosed sum (speculated to be around $200-$250 million), has been a formidable player in the customer engagement space. Known for its robust SaaS platform, it empowers brands to deliver personalized, real-time loyalty programs and experiences across various channels. Its clientele includes leading enterprises seeking to deepen customer relationships and drive repeat business through sophisticated data analytics and engagement tools. For Mastercard, SessionM augmented its data-driven services, but its divestment suggests a strategic realignment for the financial giant.
Capillary Technologies has long been at the forefront of AI-powered loyalty and customer engagement solutions. With a strong presence across Asia, the Middle East, and increasingly in North America, Capillary helps brands understand their customers better, engage them effectively, and build lasting loyalty. Its comprehensive suite of products, including loyalty management, customer relationship management (CRM), and marketing automation, serves a diverse range of industries from retail to hospitality.
The acquisition of SessionM by Capillary is a masterstroke. For Capillary, this deal brings several critical advantages:
1. **Expanded Market Reach:** SessionM’s strong foothold, particularly in North America, offers Capillary immediate access to a lucrative market and a diversified client base.
2. **Enhanced Technology Stack:** Integrating SessionM’s advanced capabilities, especially in real-time personalization and omnichannel orchestration, will significantly strengthen Capillary’s existing platform, offering an even more comprehensive and powerful solution to clients.
3. **Talent Acquisition:** The acquisition is likely to bring a wealth of experienced talent and intellectual property into Capillary, accelerating innovation and product development.
4. **Competitive Edge:** This move places Capillary in an even stronger competitive position against global players in the loyalty tech domain, allowing it to offer an unparalleled end-to-end solution.
The $20 million price tag, while a substantial investment for Capillary, represents a potentially high-value acquisition given SessionM’s established technology and client base. It reflects Capillary’s confidence in leveraging SessionM’s assets to drive future growth and market dominance.
This integration promises a unified, more powerful platform that can deliver hyper-personalized loyalty programs and customer engagement strategies at scale. Brands will benefit from richer insights, more effective campaigns, and a seamless customer journey. The combined entity is poised to capitalize on the growing demand for sophisticated loyalty solutions as businesses increasingly prioritize customer retention and lifetime value in a digital-first world.
Capillary Technologies’ acquisition of SessionM is more than just a business transaction; it’s a strategic assertion of its ambition to lead the global customer loyalty market. By integrating SessionM’s advanced platform and market presence, Capillary is set to offer an even more robust and comprehensive solution, empowering brands worldwide to forge deeper, more meaningful connections with their customers. This deal undoubtedly marks a new chapter for both entities and sets the stage for exciting innovations in customer engagement.
