May 15, 2025 | Location: Dubai, UAE
Announcing another blockbuster acquisition in the loyalty space, global leader Capillary Technologies in AI-powered loyalty management enters the North American market by acquiring Kognitiv-software, offering omnichannel intelligent loyalty solutions. This is Capillary’s fourth big acquisition in the domain of loyalty since 2021, signaling a commitment to fortifying its tech capabilities and geographic coverage, especially in important territories like the United States, the Middle East, and Asia-Pacific (ANZ, SEA).
With loyalty in the limelight for brands confronting a highly competitive retention-oriented digital economy, the acquisition adds thrust to Capillary’s ability to engage customers through highly personalized, data-driven experiences along every touchpoint of the customer journey. The move amplifies the Capillary brand promise as a next-generation loyalty solutions provider that already enjoys a place in the Forrester Wave Loyalty Solutions Report, bringing heavyweight global names into its fold.
Strategic Alignment: Why Kognitiv?
In an exclusive conversation with Times of Dubai, Siddhant Jain, Head of Business at Capillary Technologies, revealed the rationale behind choosing Kognitiv over other potential partners.
“We evaluated multiple players in the loyalty space over the past year, and Kognitiv stood out with its impressive NPS scores, a strong brand presence, and a solid client base across North America and the EMEA region. For us, it was about finding a company that not only offered complementary technology but shared our vision for where loyalty is headed, and Kognitiv was the clear fit,” Jain said.
The acquisition adds over 30 enterprise brands to Capillary’s roster, including PetSmart, Hallmark, Yuu Rewards, Kirkland’s, Curaleaf, Sharjah Co-op, and Leading Hotels of the World. The new client base further solidifies Capillary’s presence in the UAE, Saudi Arabia, Australia, and the U.S.
Strengthening the Middle East and Global Expansion
Capillary Technologies has already gained an important mantle in the Middle East region, and with the integration of Kognitiv with its own regional presence in Sharjah, the prospect of further entrenching Capillary as a solution for enterprise clients in the UAE and across the broader GCC region should become a distinct possibility.
It seems obvious that we are excited about the region with over 20 employees already working out of our Dubai office,” Jain said. “We are looking at rapid growth in the next couple of years, and the existing partnerships of Kognitiv could fast-track that.”
Jain highlighted some cases, including Sharjah Coop, Al-Futtaim Group, and Aldar, through which Capillary is positioning itself as the preferred partner for loyalty technology in the Middle East. This acquisition enables Capillary to offer smarter, more agile, and more customizable loyalty programs that respond to the changing needs of GCC-based enterprises.
The AI Advantage: Loyalty with Intelligence
At the heart of this acquisition is Capillary’s vision to evolve the concept of loyalty from a transactional engagement model to a deeply personal, AI-driven, relationship engine. This technology of Capillary enables brands to integrate behavioral data, omnichannel insights, and real-time engagement tools to build customer journeys based on genuine lifetime loyalty rather than just repeat purchases.
Kognitiv’s technology shall strengthen Capillary’s omnichannel personalization abilities, creating the seamless, consistent experience that is trackable across digital and physical touchpoints. Through these enhanced dashboards, brands will gain access to segmentation and customer intelligence required by loyalty metrics: higher repeat purchase rates, increased average order value, and customer lifetime value.
“More and more enterprise brands in the UAE and GCC are shifting focus from expensive customer acquisition to profitable customer retention, This deal enables us to equip those companies with cutting-edge AI capabilities that transform loyalty into a strategic growth lever,” Jain noted.
Maintaining Brand Continuity For Now
When asked whether Kognitiv will be rebranded under the Capillary name, Jain clarified that a phased integration approach is in place.
“For the next couple of years, we’ll retain the Kognitiv brand to ensure continuity and preserve its market recognition. Over time, as we complete operational integration and establish joint credibility, we’ll transition toward a unified brand under the Capillary umbrella.”
This strategy reflects Capillary’s sensitivity to customer expectations and stakeholder communication, a trait that has helped it successfully integrate other recent acquisitions, including Brierley+Partners, Persuade, and Tenerity’s Rewards+ business unit.
Looking Ahead: Metrics and Market Impact
Capillary is defining success over the next 12 months based on three core criteria:
- Seamless integration of Kognitiv’s product stack and teams
- Expansion of market share in North America, ANZ, and the UAE
- Demonstrated ROI and improved retention for enterprise clients
Looking further ahead, Capillary anticipates a continued surge in demand for loyalty solutions that are flexible, data-rich, and responsive to changing consumer behavior.
“We’re entering an era where loyalty isn’t just about discounts or points, it’s about real-time relevance, emotional connection, and delivering value across every interaction,” Jain concluded.
With a presence in over 30 countries and a portfolio that includes more than 100 brands and 15+ Fortune 500 clients, Capillary is emerging as a powerhouse in the loyalty tech space, and this latest acquisition only sharpens its edge.
About Capillary Technologies
Established in 2012, Capillary Technologies is an AWS-native SaaS company with AI at its helm, specializing in loyalty management and customer engagement solutions.
Servicing more than 100 enterprise-level clientele spread across 30 countries, the solution enables brands to operationalize experiential loyalty through personalized, data-affection insights. Recognized by forerunners Gartner and Forrester in the realm of loyalty technology, the organization employs 800+ personnel spread across the US, the Middle East, and Asia.
About Kognitiv
Kognitiv, a global loyalty solutions company, empowers brands to forge lasting customer ties. Besides its avant-garde omnichannel SaaS platform and a client base from 20-plus countries, Kognitiv enables companies to stay ahead of customer expectations. The company merged with Aimia’s Loyalty Solutions business in 2020 and has since then flourished into a key player in the loyalty ecosystem.
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