Capillary Technologies India, a Bengaluru-based AI-powered SaaS company has filed its Draft Red Herring Prospectus (DRHP) with SEBI on 18 June 2025 after shelving its 2021 plans due to market conditions. This is the company’s second attempt at going public after a stronger market and better financials. The IPO consists of fresh issue of equity shares of INR 430 crore and OFS of up to 1.83 crore shares by existing shareholders including Capillary Technologies International which holds 65.47% stake and several institutional and individual investors.
Capillary Technologies IPO: Structure & Selling Shareholders
The OFS will see significant offloading by:
- Capillary Technologies International (Promoter) – up to 1.42 crore shares
- Ronal Holdings LLC – 14.66 lakh shares
- Trudy Holdings – 18.33 lakh shares
- Filter Capital India Fund I – 7.59 lakh shares
- Individual shareholders, including Sripathi Venkata Ramana Reddy, Harminder Sahni, Adarsh Reddy B, and others
Utilization Of Fresh Issue Proceeds
According to the DRHP, the INR 430 crore from the fresh issue will be allocated as follows:
- Cloud infrastructure enhancement: INR 120 crore
- R&D for platform and product development: INR 151.5 crore
- Computer systems procurement: INR 10.3 crore
- Strategic acquisitions and general corporate purposes: Remaining funds
Capillary’s Business Model & Growth Strategy
Founded in 2008 by IIT-Kharagpur alumni Aneesh Reddy, Capillary Technologies is a cloud-native AI-driven SaaS firm offering enterprise loyalty, CRM, and customer engagement solutions. The company caters to over 390 brands across 46 countries, with a strong footprint in North America, Asia-Pacific, and EMEA.
Its product portfolio includes:
- Loyalty+ (loyalty management)
- Engage+ (customer engagement with generative AI)
- Insights+ (predictive analytics)
- Rewards+ (rewards platform)
- CDP (customer data platform)
With customers ranging from Tata Digital and Aditya Birla Fashion to Abbott Labs and Frontier Communications, Capillary services verticals like retail, BFSI, healthcare, telecom, and energy.
Strong Financial Turnaround in FY25
In a key milestone, Capillary turned profitable in FY25:
- Revenue: INR 598.3 crore (up 13.9% YoY)
- Net Profit: INR 13.3 crore (vs INR 59.4 crore loss in FY24)
- Net Revenue Retention (NRR): 121.25% in FY25
- New ACV: INR 122.36 crore
- CAC Payback Period: 16 months, reflecting strong ROI on customer acquisition
Strategic Acquisitions Bolster Growth
Capillary has adopted an aggressive inorganic growth strategy, making four international acquisitions in under four years:
- Persuade Group (U.S.) – Acquired in 2021; revenues surged 4x to INR 212.20 crore by FY25
- Brierley+Partners (U.S.) – Loyalty consulting firm acquired in 2023 for INR 82.63 crore
- Rewards+ (Digital Connect from Tenerity) – EU-focused rewards platform acquired in 2023
- Kognitiv (May 2025) – Recent acquisition aimed at scaling operations in North America and entering Australia and New Zealand
The combined revenue from these acquisitions in FY25 was INR 435.05 crore, accounting for 72.7% of the company’s total revenue. Significantly, INR 291.62 crore came from continuing customers post-acquisition, and INR 141.66 crore was driven by newly onboarded clients.
Competitive Landscape
Capillary Technologies is a rare homegrown player in the enterprise loyalty and engagement SaaS segment, with no listed Indian peers. Globally, it competes with Salesforce, Adobe, HubSpot, and Braze Inc.
Its differentiated strategy of API-first integration, AI-led personalization, and omnichannel analytics positions it well to ride the global surge in loyalty marketing, a market estimated to grow from USD 17 billion (~INR 1.47 lakh crore) in FY24 to USD 27.3 billion (~INR 2.36 lakh crore) by FY29 (CAGR 9.9%).
Shareholding Snapshot (Pre-IPO)
List of Shareholders Holding 1% or More of the Paid-Up Equity Capital
| S. No. | Shareholder Category | Name | No. of Equity Shares | % of Pre-IPO Equity Share Capital |
| 1 | Promoter | Capillary Technologies International Pte Ltd | 4,80,08,006 | 65.47% |
| 2 | Promoter | Aneesh Reddy Boddu | 17,01,681 | 2.32% |
| 3 | Promoter Group | Mohan Boddu Reddy | 48,699 | 0.07% |
| 4 | Promoter Group | Aditya Reddy Boddu | 23,974 | 0.03% |
| 5 | Promoter Group | Pavani Pulla Reddy | 11,361 | 0.02% |
| 6 | Institutional Investor | Ronal Holdings LLC | 55,24,350 | 7.53% |
| 7 | Institutional Investor | AVP Fund II | 40,39,041 | 5.51% |
| 8 | Institutional Investor | Trudy Holdings | 32,90,769 | 4.49% |
| 9 | Institutional Investor | Filter Capital India Fund I | 26,83,935 | 3.66% |
| 10 | Institutional Investor | Schroders Capital Private Equity Asia Mauritius IX Ltd | 11,28,650 | 1.54% |
| 11 | Individual | Anant Choubey | 9,18,732 | 1.25% |
| 12 | Individual | Bollam Sridhar | 8,02,553 | 1.09% |
| 13 | LLP | GGSA Ventures LLP | 7,43,591 | 1.01% |
| Total | 6,89,25,342 | 93.99% |
Highlights:
- Promoter Group Total Holding (Pre-IPO): 4,97,93,721 shares (~67.90%)
- Top 5 Institutional Investors collectively hold ~22.73%
- Public Shareholding (Investors + Individuals): ~32.10%
- 10+ shareholders hold ≥1% individually
Merchant Bankers & Registrar
The IPO is being managed by:
- JM Financial
- IIFL Capital Services
- Nomura Financial Advisory and Securities (India)
MUFG Intime India will act as the registrar to the offer.
Bottom Line
Capillary Technologies IPO attempt comes at a time of solid financial momentum, expansion across verticals and geographies, and integration of value-accretive acquisitions. With an improving bottom line, marquee global clients, and a scalable SaaS model, the company is well-positioned to tap capital markets as a rare Indian tech play in the enterprise loyalty management segment.
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