Capillary Technologies India Limited has announced a major strategic partnership with one of the largest retailers in the United States and a Fortune 50 company. The five-year agreement, with a total contract value of more than $20 million, positions Capillary as the strategic partner to modernize the retailer's loyalty and customer engagement ecosystem through AI-powered solutions.

Strategic Partnership Overview

The comprehensive partnership will leverage Capillary's advanced AI-driven platform to transform the retailer's customer engagement capabilities. The collaboration encompasses multiple strategic areas designed to enhance customer relationships and drive measurable business outcomes.

Platform Capabilities and Benefits

Through Capillary's AI-powered platform, the Fortune 50 retailer will gain access to comprehensive customer engagement tools. The implementation will enable the organization to deliver personalized customer experiences while enhancing member engagement and lifecycle value. The aiRA engine's AI-driven decisioning capabilities will improve promotional effectiveness and efficiency, supporting real-time, data-driven marketing and loyalty strategies.

Leadership Perspective

Aneesh Reddy, Founder and CEO of Capillary Technologies, expressed enthusiasm about the partnership: "We are thrilled to partner with one of the most respected retail organizations in the United States and the world on this strategic initiative. By integrating our AI-powered aiRA engine with their extensive national footprint, we are set to redefine how brands connect with customers in the healthcare and retail space."

Technology Implementation

The partnership will utilize Capillary's expertise in AI-driven loyalty, customer engagement, and data-led decisioning to help the organization drive deeper customer relationships. The platform implementation will focus on enabling more intelligent, personalized, and measurable customer interactions at scale, supporting the retailer's commitment to enhanced customer experiences.

Company Background

Founded in 2012, Capillary Technologies India Limited operates as a software product company offering AI-based cloud-native SaaS products and solutions to enterprise customers globally. The company serves 115 customers including 20 Fortune 500 customers across 47 countries, providing end-to-end loyalty solutions through its diversified product suite including Loyalty+, Engage+, Insights+, Rewards+, and customer data platform (CDP).

Capillary Technologies India Limited has issued a regulatory clarification regarding the exercise price mechanism under its Employee Stock Option Plan (ESOP) 2021 scheme. The clarification, dated February 24, 2026, addresses feedback received from proxy advisors concerning the company's postal ballot notice issued on February 06, 2026.

Proxy Advisor Concerns Addressed

The company received feedback from proxy advisors highlighting concerns about the lack of clarity regarding the exercise price determination. The advisors noted that the exercise price could range between face value and market price, potentially allowing significant discounts to prevailing market prices.

Company's Pricing Mechanism Clarification

In response to these concerns, Capillary Technologies provided detailed clarification on its ESOP pricing structure:

The company emphasized that this pricing mechanism is "objective, market-linked and transparent, and does not permit arbitrary pricing." The structure is designed to ensure continued alignment of employee incentives with long-term shareholder value creation.

Regulatory Compliance and Governance

Capillary Technologies confirmed that ESOP 2021 is implemented in strict accordance with:

• Companies Act, 2013
• SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021
• Supervision of the Nomination and Remuneration Committee

The company noted that extending ESOP benefits to subsidiary employees is a standard practice for listed groups, aimed at retention of critical talent and value creation at a consolidated level.

Postal Ballot Context

The clarification relates to Special Resolution No. 1 in the postal ballot notice, which seeks shareholder approval for ratification of extension of benefits under ESOP 2021 to employees of subsidiary companies, whether in India or overseas. The additional information has been made available on the company's website to provide shareholders with enhanced clarity before voting.

The clarification was signed by Gireddy Bhargavi Reddy, Company Secretary and Compliance Officer, and filed with both BSE Limited and National Stock Exchange of India Limited as required under Regulation 30 of SEBI listing regulations.