India’s Capillary Technologies acquires Mastercard’s SessionM for $20 million

Loyalty management platform operator Capillary Technologies India has announced the acquisition of Mastercard-owned Session M in an all-cash $20 million deal, marking a significant overseas expansion for the Bengaluru-headquartered SaaS company.

In a stock exchange disclosure on Tuesday, the company said its board has approved an investment into its wholly owned overseas arm, Capillary Pte. Ltd., to acquire 100 percent shareholding in US-based Session M Inc., currently a wholly owned subsidiary of NYSE-listed Mastercard Inc. The transaction will also include Session M Czech Republic.

The deal involves a base cash consideration of $20 million upfront. The final payout will be subject to customary adjustments at closing for debt, working capital and related factors. The acquisition is expected to be completed within 180 days from the signing date.

Founded in 2011 and acquired by Mastercard in 2019, Session M operates a cloud-based loyalty and customer engagement platform in the software-as-a-service, or SaaS, segment. The company reported a turnover of $50.5 million in calendar year 2025, compared with $54.5 million in 2024 and $57 million in 2023.

Session M has a significant presence in North America, along with operations in Latin America and Asia Pacific markets. It serves clients across food and beverages, consumer goods and retail, airlines, and oil and gas sectors.

Capillary said the acquisition forms part of its inorganic growth strategy to strengthen its footprint in North American and Latin American loyalty markets, while adding to its APAC portfolio. The company noted that Session M’s complementary business model and long-tenured blue-chip clientele are expected to support post-acquisition efficiencies in the loyalty segment.

According to an investor presentation, the combined entity is expected to have over $115 million in annual recurring revenue and serve more than 150 customers globally after the acquisition.

Capillary Technologies, which went public in November 2025, had a muted listing. The stock debuted at Rs 560 per share on the BSE, a 3% discount to its issue price of Rs 577. On the NSE, it opened at Rs 571.9.

On the financial front, Capillary’s revenue from operations rose 16% year-on-year to Rs 184 crore in Q3 FY26. However, its profit declined 23% to Rs 8 crore in the same period.