Capillary Technologies, known for its omnichannel engagement and commerce solutions, is gearing up to file its issue papers with the Securities and Exchange Board of India for an IPO worth INR 1,725 crore (around USD 200 million) by June 2025. This comes after the company’s last attempt in 2021, which was shelved due to unfavourable market conditions. Now, Capillary is aiming to nearly double that IPO size.
Capillary Technologies IPO – Key Points
- Size and Shares: The company plans to raise between INR 98 crore to INR 196 crore (USD 12 million to USD 24 million) through new share issues, with the rest being an offer for sale (OFS)
- Valuation Expectations: Capillary Technologies is eyeing a valuation of INR 4,311 crore (USD 500 million), with the potential to hit USD 1 billion if the market goes in a favourable direction.
- Financial Health: Capillary is expected to close this financial year with a revenue of about INR 650 crore and an EBITDA margin of 15%, a stark contrast to their FY21 revenue of INR 123.1 crore.
Why the IPO Now?
Capillary’s improved financial performance has led to a larger IPO size. The company has shown steady revenue growth, almost doubling its 2021 target. Unlike before, there is no mention of pre-IPO funding, showing Capillary’s confidence in its financial stability. The small size of the fresh issue suggests the company has minimal capital needs at the moment.
Leadership and Strategy:
Capillary, founded by Aneesh Reddy in 2008, operates in India, Southeast Asia, MENA, and the US. Its focus is on improving customer engagement while growing the business. The company is supported by major investors like Avataar Ventures, Filter Capital, and Peak XV Partners.
In a strategic move last October, Siddhant Jain, with 13 years at Capillary, was elevated to Chief Customer Officer in Asia. “Siddhant’s strategic vision has been vital,” Reddy commented, highlighting Jain’s role in expanding and enhancing operations in Asia.
Last year’s Series D round saw Capillary pocket USD 140 million, with a significant amount coming from secondary transactions, allowing some cash-out for existing stakeholders.
Looking Ahead
With solid financials, a strong leadership team, and robust investor support, Capillary Technologies is on the cusp of a significant leap. Filing the DRHP by June 2025 is a statement of intent towards becoming a global force in customer loyalty and engagement. This IPO will not only allow current investors an exit opportunity but also shine a light on Capillary’s long-term growth prospects in the public eye.
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