Capillary Tech Credits AI for Strong SaaS Growth
In its Q3 earnings call, Capillary Technologies attributed its robust SaaS growth to strategic investments in AI. The company highlighted that its AI modules are now driving predictive analytics for workforce management, helping its enterprise HR clients anticipate employee churn and personalize benefits in real-time.
The company's Q3 FY26 performance shows revenue climbing 16% to INR 184 crores. More telling is the net retention rate of 111%, with the organic business hitting an impressive 115%—placing Capillary in the top percentile of global SaaS companies and signaling strong product value and customer expansion. This growth is fueled by a clear capital strategy following its November 2025 IPO, which raised ₹877.50 crore. A significant portion of the proceeds were explicitly earmarked for inorganic growth, setting the stage for an aggressive acquisition-led go-to-market motion to capture new markets and technology. Executing on this strategy, Capillary announced in February 2026 its acquisition of SessionM from Mastercard for a reported $20 million in cash. This move, its fifth in five years, is designed to significantly bolster its North American presence and
