In a major move to solidify its global footprint, Bengaluru-headquartered SaaS leader Capillary Technologies India Ltd has announced a definitive agreement to acquire SessionM, a US-based loyalty and engagement platform, from payments giant Mastercard. The all-cash deal, valued at $20 million (approximately ₹181.7 crore), marks Capillary’s fifth and most ambitious acquisition to date since 2021. The transaction is expected to close within 180 days, subject to customary closing adjustments for debt and working capital.
The acquisition includes 100% shareholding in SessionM Inc. and its subsidiary, SessionM Czech Republic, executed through Capillary’s wholly-owned overseas arm, Capillary Pte. Ltd. This strategic merger is set to supercharge Capillary’s Annual Recurring Revenue (ARR), adding over $35 million to its existing $82 million—a massive 40% increase that will push the combined entity’s ARR beyond the $115 million mark.
The acquisition of SessionM, which was originally bought by Mastercard in 2019, gives Capillary direct access to a “blue-chip” clientele in highly competitive markets. While the North American loyalty market is often described as a “red ocean” due to high saturation, Capillary’s AI-native platform is designed to modernize legacy systems and drive superior margins for enterprise brands.
Key benefits of the deal include:
- Market Penetration: Strengthening Capillary’s presence in North America (where SessionM generates 70% of its revenue), Latin America, and Europe.
- Tier-1 Portfolio: Adding over 40 enterprise customers, including five Fortune 500 companies across the airlines, retail, CPG, and Quick Service Restaurant (QSR) sectors.
- Vertical Integration: Preservation of SessionM’s deep technical expertise through a specialized team transition, ensuring seamless continuity for existing clients.
Despite SessionM reporting a slight revenue dip to $50.5 million in 2025, Capillary CEO Aneesh Reddy expressed confidence in the unit’s long-term profitability. The company plans to migrate SessionM’s customers onto its core platform over the next 24 to 36 months, aiming for a 45% contribution margin—a strategy that has successfully delivered a 4-to-5-year payback period in previous acquisitions like Brierley and Kognitiv.
Following its public listing in November 2025, Capillary has demonstrated robust operational growth, reporting a 16% year-on-year revenue increase to ₹184 crore in Q3 FY26. While the company saw a temporary dip in net profit due to IPO-related expenses, the SessionM deal is projected to help Capillary cross the ₹1,000 crore revenue milestone next year. With an adjusted EBITDA target of ₹398 crore by CY29, Capillary is positioning itself as a dominant “full-stack” global engine for customer loyalty and predictive analytics.
Key Highlights:
- Strategic Buy: Capillary Technologies is acquiring SessionM from Mastercard for an upfront cash consideration of $20 million.
- Revenue Boost: The deal adds $35 million in ARR, boosting Capillary’s total annual recurring revenue to over $115 million.
- Global Footprint: The acquisition significantly expands Capillary’s market share in the US, Canada, and Latin America, adding Fortune 500 airlines and retailers to its client list.
- Path to Profitability: Capillary aims to integrate SessionM’s customers over the next 2-3 years, targeting a high contribution margin of 45% post-migration.