Results · Enterprise Software & IT

Capillary Tech reports revenue growth amid fraud loss

By Startup Enthusiast · 4 August 2026

What they do

Capillary Tech provides cloud-based loyalty and customer relationship management solutions to global brands

The company posted a net loss of ₹9.6 Cr due to a ₹33.4 Cr cyber fraud loss in its Czech subsidiary

Operating revenue rose 42% to ₹256.6 Cr, while adjusted EBITDA more than doubled to ₹44 Cr year-on-year

Capillary Tech reported a net loss of ₹9.6 Cr for the first quarter of fiscal year 2027.
This loss contrasts with a profit of ₹74.5 Lakh in the same period last year.
The financial hit stems from an exceptional loss of ₹33.4 Cr caused by cyber-enabled banking fraud.
The fraud occurred at the company's step-down subsidiary located in the Czech Republic.
Unauthorized transfers totaling approximately €3.04 Mn were made from beneficiary accounts.
Beneficiary accounts holding roughly ₹4.7 Cr have been frozen pending investigation outcomes.
The company has filed an insurance claim and informed law enforcement regarding the incident.
Final financial impact remains contingent on the results of ongoing forensic investigations and recovery efforts.

The fraud represents a significant operational risk for the company's international expansion strategy.
Despite the loss, core business metrics showed strong growth indicating healthy underlying demand.
Adjusted EBITDA surged 132% year-on-year, highlighting improved profitability before exceptional items.
Normalized profit excluding the fraud loss increased by 332% compared to the prior year.

Capillary Tech offers cloud-native loyalty and customer engagement solutions to enterprises globally.
The platform serves over 465 brands across 53 countries worldwide.
Major clients include Tata Digital, Aditya Birla Fashion and Retail, and Abbott Laboratories.
Revenue is primarily driven by subscription services which accounted for 94.5% of total income.
Installation and campaign fees contributed the remaining portion of the operating revenue.
The company integrates AI-powered features through its CustomerGlu software acquisition.
CustomerGlu adds gamified experiences like challenges, streaks, and rewards to loyalty programs.
SessionM acquisition from Mastercard was successfully closed to expand global capabilities.
New large enterprise client additions are ongoing across global markets.

The company will monitor the outcome of forensic investigations and insurance claims.