Capillary Technologies, a Singapore based leading SaaS product company which helps brands stay ahead of the digital evolution, has signed a strategic joint venture agreement with Saudi-based Veda Holding to form Capillary Arabia. The venture will allow Capillary Technologies' enhanced access to the Kingdom's rapidly growing retail, F&B and Manufacturing sector, and the ability to provide continued on-ground support to customers.
Capillary Technologies has witnessed rapid growth in Asia. In 2018, the company posted a record 100% growth from sales of its omnichannel retailing and CRM software in Southeast Asia. From its headquarters in Singapore, Capillary has established a growing presence in Malaysia, Thailand and Indonesia, servicing more than 14 million customers regionally and over 450 brands. With over 10 million monthly transactions across 1,400 regional stores, global revenues witnessed an exponential increase of 55% in 2018.
Fuelling its next phase of growth Capillary aims to replicate the success in Southeast Asia in the Middle East. Saudi Arabia is host to a growing and vibrant international luxury retail culture. According to Euromonitor, the retail industry in Kingdom is currently worth US$106 billion and is forecast to steadily rise to US$119 billion by 2023. While store-based retailing continues to dominate the sector accounting for $103 billion of the overall market in Saudi Arabia, non-store retailing, which includes online shopping, direct selling, mobile internet, social media and home shopping, is set to grow by 93% from now to 2023.
"We are excited to strengthen our presence in Saudi Arabia with the joint venture with Veda Holding. It demonstrates our commitment to the local market and gives us the opportunity to onboard local talent to provide support to our customers in their preferred method," said Aneesh Reddy, CEO and Co-founder Capillary Technologies. "The retail sector is on the cusp of transforming into a technology-fueled, consumer-driven industry. Capillary Arabia would be fulfilling the gap in the retail tech in the Kingdom. Our proven success record in the region and customer-centric solutions combined with Veda's robust retail network and superior market knowledge will provide Capillary Arabia with an unparalleled advantage to develop and digitize the retail ecosystem. By providing superior AI-powered technology we are set to help brands tap the immense opportunities by redefining their consumer experience across platforms, improve brand loyalty, and always be consumer-ready."
Founded in 2017 by Fahad Alhokair, Veda Holding is an investment holding company providing value and growth capital to startups and mature companies. Veda's investment portfolio includes a number of world-class luxury fashion and beauty brands.
"Consumers live a fast-paced life and demand an equally fast and personalized experience while shopping instore or online. We are delighted to join forces with Capillary to help brands reinvent themselves and their approach to not only grow their customer base, but also add value to their purchasing experience," said Fahad Alhokair, Founder, Veda Holding. "Veda Holding is committed to redefine the retail experience in the country and help retailers drive growth. We believe this joint venture will enable us to jointly explore and develop the retail ecosystem and bring it on par with global standards."
With a global clientele of more than 400 marquee brands, consumers are at the heart of Capillary's solutions. Local brands such as Herfy's and Al Hokair Group rely on Capillary's solutions to enhance their customer experiences and boost brand loyalty. Capillary is actively involved in spearheading CRM and AI driven solutions to transform customer engagement in different sectors, and to create a seamless omnichannel presence for some of the biggest brands in the market.