Capillary Technologies’ Subsidiary Hit By €3 Mn Cyber Fraud

SaaS company Capillary Technologies announced that one of its “recently acquired step-down subsidiaries” has been hit by a cyber-enabled banking fraud, leading to a loss of €3 Mn (about ₹32.7 Cr).

The funds were fraudulently transferred to an unauthorised third-party bank account using advanced deepfake methods including cloning, signature forging, social engineering to impersonate the company’s senior management, Capillary said in an exchange filings. As per the company, the exploit took place just prior to this weekend (before July 3).

Capillary has taken legal and operational measures to safeguard and recover the transferred funds, including working with law enforcement, cybercrime authorities and concerned banks. It further noted that the step-down subsidiary was insured under a cyber and crime insurance policy and the company is also evaluating the extent of insurance coverage and recoverability.

Upon identifying the attack, the company was able to recover €450K. It has also traced bank accounts suspected to be related to the fraud and asked related banks to put the accounts on hold.

“With the swift action by the Company and advice of the relevant local authorities, additional funds were traced, and those accounts have since been placed on hold by the respective banks, reducing the amount at risk. The exact amount currently on hold is yet to be determined,” the company said.

Despite the cyberfraud, Capillary believes that its customer data and the company’s technology infrastructure remains uncompromised.

The SaaS company’s most recent acquisition was global card network MasterCard’s customer engagement and loyalty platform SessionM, which it snagged in February for $20 Mn (about ₹190.7 Cr) to strengthen presence in the North American and Latin American markets.

Besides, the company also acquired Canada-based martech platform Kognitiv for an undisclosed amount last year.

On the financial front, Capillary’s net profit grew multifold to ₹43.4 Cr in Q4 FY26. Its operating revenue also jumped 25% YoY to ₹191.3 Cr in the March quarter.

For the full fiscal FY26, Capillary’s profit skyrocketed 296% to ₹52.4 Cr from ₹13.3 Cr in FY25. The top line rose 23% to ₹734.6 Cr from ₹598.3 Cr in the previous fiscal.

Shares of Capillary ended today’s trading session 0.15% higher at ₹515.85.

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