AI-powered customer engagement solution provider Capillary Technologies’ board approves its long-waited INR 2,250 crore (~USD 263 million) IPO. The company is planning to submit its IPO papers by June 2025 to the Securities and Exchange Board of India (SEBI). Capillary Technologies IPO to hit primary market by the end of H1 FY25.
Capillary Technologies IPO – Structure
As per the recent reports, Capillary Technology IPO will have a fresh issue of INR 500 crore and an OFS of INR 1,750 crore. This will allow existing investors like Warburg Pincus, Peak XV Partners, American Express Ventures and others to partially exit their holding and give market participants an opportunity to invest in a fast scaling global SaaS player.
Capillary had attempted an IPO in 2021 but had to shelve it due to market volatility. Now the company is looking to raise valuation in the range of USD 500 million (~INR 4,290 crore ) to USD 1 billion (~INR 2,590 crore) depending on market and investor appetite.
Strategic Growth and Global Expansion
Founded in 2008 by IIT-Kharagpur alumni Aneesh Reddy, Ajay Modani and Krishna Mehra (with Reddy being the CEO), Capillary Technologies has become a significant player in customer engagement software space. From powering over 120 loyalty programs across 30+ countries to serving marquee clients like Tata Group, Domino’s, Shell, Marks & Spencer and Puma, Capillary has deep roots in the enterprise ecosystem.
The company’s recent acquisition of Canada-based Kognitiv (its 4th M&A deal since 2021) shows its aggressive push into the North American market. Previous acquisitions include Persuade, Brierley, Rewards+, making Capillary a global leader in loyalty solutions. Kognitiv brings over 30 enterprise customers and strengthens Capillary’s omnichannel and data-driven personalization capabilities.
Strong Financials and KPIs
Capillary reported consolidated revenue of INR 600 cr in FY24, 80% YoY growth. Net losses narrowed to INR 59 cr, 33% YoY. FY25 projections indicate revenue could be INR 650 cr with EBITDA margin of 15% – a huge jump from FY21 revenue of INR 123 cr.
The growth has been driven by a mix of organic and inorganic initiatives. A USD 140 million (~INR 1,201 crore) Series D round closed last year with USD 95 million (~INR 815 crore) in secondary transactions which enabled partial exits and brought in new investors like Pantheon, 57Stars and Unigestion.
Notably, Capillary’s Indian operations are held by a Singapore based parent company with 98% stake, which could have implications for regulatory scrutiny and investor interest.
IPO Timing
Capillary’s decision to revive IPO plans coincides with the broader Indian tech listing revival. Over 20 new age companies – Shiprocket, Groww, PhysicsWallah, boAt, Urban Company, Razorpay and Lenskart are in the queue or prepping to go public in 2025.
With public market interest in SaaS and tech enabled platforms rebounding, Capillary IPO is well timed. The company has not announced a pre-IPO round which is a rare occurrence in the startup ecosystem.
What’s Next
If successful, Capillary Technologies’ IPO will be a big milestone for Indian SaaS. It will offer liquidity to long term investors, brand visibility and firepower to expand internationally.
As Capillary files its DRHP, all eyes will be on the company’s next financials and regulatory approvals. For investors looking to invest in a global SaaS company with deep enterprise roots, growing ARR and demonstrated M&A acumen, Capillary could be one of the big listings of 2025.
Key Investors: Warburg Pincus, Peak XV Partners, Avataar Ventures, Qualcomm Ventures, Filter Capital, InnoVen Capital, American Express Ventures
Clients: Tata Group, Domino’s, Shell, Puma, Marks & Spencer, Petron, Indigo
IPO Size: INR 2,250 crore (INR 500 Cr fresh issue + INR 1,750 Cr OFS)
Expected Filing: June 2025
Valuation Range: USD 500 million – USD1 billion
Latest FY Revenue: INR 600–650 crore
Presence: India, Southeast Asia, MENA, US, Europe, ANZ
With the growing trend of new-age companies opting for the confidential filing route, Capillary Technologies’ DRHP is also likely to be filed confidentially.