In a significant development for India’s technology and capital markets, Capillary Technologies India has received the Securities and Exchange Board of India’s (SEBI) observation letter for its proposed IPO. Capillary Technologies IPO approval was granted on 22 September 2025, paves the way for the Bengaluru-based SaaS firm to hit the public markets after shelving its earlier attempt in 2021.
Capillary Technologies IPO Structure
Capillary Technologies IPO will consist of a fresh issue of equity shares worth INR 430 crore alongside an offer for sale (OFS) of up to 1.83 crore shares by existing investors.
Key sellers in the OFS include:
- Capillary Technologies International (Promoter) – up to 1.42 crore shares
- Ronal Holdings LLC, Trudy Holdings, Filter Capital India Fund I
- Several individual shareholders
JM Financial is acting as the lead manager for the issue, with MUFG Intime India appointed as registrar.
Use of Proceeds
According to the company’s DRHP, proceeds from the fresh issue will be directed toward:
- Cloud infrastructure expansion (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
Business & Market Position
Founded in 2008 by IIT-Kharagpur alumnus Aneesh Reddy, Capillary Technologies operates as a cloud-native, AI-driven SaaS platform specializing in enterprise loyalty, CRM, and customer engagement. Its solutions are used by over 390 brands across 46 countries, including Tata Digital, Aditya Birla Fashion, and Abbott Labs.
With no listed Indian rival in the enterprise loyalty SaaS space, Capillary positions itself uniquely against global heavyweights such as Salesforce, Adobe, HubSpot, and Braze.
Financial Momentum
Capillary’s approval comes on the back of a financial turnaround 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%
The company’s aggressive acquisition strategy—adding firms like Persuade Group, Brierley+Partners, Rewards+, and most recently Kognitiv—has also bolstered its global footprint, particularly in North America and Europe.
Capillary Technologies IPO approval marks a rare SaaS listing opportunity for Indian investors, providing access to a scalable, AI-driven enterprise tech story with global ambitions. The timing of the green light—amid improved profitability and expanding international presence—adds momentum to India’s growing roster of tech-driven IPOs.
As the market awaits details on issue price band and opening dates, Capillary Technologies IPO stands out as one of the few chances for public investors to participate in a homegrown SaaS growth narrative.
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