Capillary Technologies, a name that’s quietly become a juggernaut in the SaaS-based customer loyalty space, is once again stepping up to the IPO to raise capital. After putting things on hold in 2021—thanks to a rollercoaster market that made even seasoned investors nervous—the Bengaluru-born startup has now refiled its draft red herring prospectus (DRHP) with SEBI. And this time, they’re back with more muscle.
The IPO pitch? A fresh issue of ₹430 crore, plus an offer-for-sale (OFS) of 1.83 crore shares. A few heavyweight investors—including Capillary Technologies International Pte, Ronal Holdings, Trudy Holdings, and Filter Capital India Fund I—are eyeing a partial exit. Capillary’s numbers look better than ever: a clean profit in FY25 after last year’s red ink, which gives the whole move a lot more bite.
So, what’s the game plan for the cash? Expand cloud capacity, double down on R&D, buy some serious tech, maybe scoop up a few companies, and fund the usual war chest for general operations. Founded by Aneesh Reddy in 2008, Capillary has grown from a scrappy Indian startup to a global player serving over 390 brands across 45 countries.
With India’s IPO scene finally warming up again—especially for tech-driven SaaS models—Capillary’s timing could be spot on. Its financial rebound is notable: from a loss of ₹59.4 crore in FY24 to a ₹13.3 crore profit in FY25. That’s no small swing.
JM Financial, IIFL Capital Services, and Nomura are steering the IPO ship, while MUFG Intime India handles the registry work. In a climate where more startups are testing public markets, Capillary’s return could well be a sign of the times.
1. Capillary Technologies Refiles IPO: A Closer Look
1.1 The IPO Breakdown and Refiling
June 18, 2025. Mark the date. That’s when Capillary went back to SEBI with its DRHP—round two of its IPO saga. The first try in 2021 got iced, thanks to some brutal market headwinds. Now? The wind’s at their back. Profits are up, the market looks friendlier, and Capillary’s clearly feeling bullish.
What’s in the package? ₹430 crore in new shares and an OFS of 1.83 crore equity shares. Big-name stakeholders like Capillary Technologies International Pte and Filter Capital are trimming their stakes. Face value? ₹2 per share.
2. Business Model of Capillary Technologies
2.1 What Capillary Technologies Does
At its core, Capillary is building the digital loyalty infrastructure brands didn’t know they needed—until they saw what it could do. They offer a buffet of AI-driven platforms:
- Loyalty+ – for managing customer loyalty programs
- Engage+ – for intelligent engagement across channels
- Insights+ – to squeeze meaning from messy customer data
- Rewards+ – a sleek rewards and points engine
- CDP – a serious customer data platform
Together, these tools aren’t just software—they’re a playbook for brands wanting to hold onto customers in a world obsessed with instant gratification.
2.2 Revenue Model
It’s the classic SaaS model, but with depth. Subscriptions form the backbone, but there’s more: integrations, customizations, and support add layers of recurring income. In FY25, revenue jumped 13.93% YoY—₹598.3 crore, up from ₹525.1 crore in FY24. Not bad for a company still pushing into new markets.
3. Company Background and Founding Story
3.1 The Early Days
Capillary wasn’t born in a garage, but it carries that same scrappy energy. Aneesh Reddy, fresh out of IIT Kharagpur, started the company in 2008. His big idea? Reinvent how brands talk to customers—using data, cloud tools, and a dash of machine learning.
3.2 Global Expansion and Milestones
That little idea now spans 45 countries. Capillary counts giants like Tata Digital and Domino’s among its clients. Offices stretch across the U.S., U.K., UAE, Singapore, Indonesia—the whole map, really. Not bad for a company that started as a B2B loyalty platform in India.
4. Funding History and Financial Performance
4.1 Funding Journey
After pulling back its IPO in 2021, Capillary raised $140 million in 2024 through a Series D round. The cap table? Impressive: Qualcomm Ventures, Norwest Venture Partners, Avataar Ventures, Filter Capital, InnoVen Capital, Peak XV—the usual suspects of big-league venture capital.
4.2 Recent Financials
- FY25 Profit: ₹13.3 crore (versus a loss of ₹59.4 crore in FY24)
- Operating Revenue: ₹598.3 crore (14% YoY growth)
- EBITDA Profit: ₹78.6 crore (up from negative ₹1.5 crore)
- Total Revenue: ₹611.9 crore
- Expenditure: ₹533.3 crore
Capillary’s books are no longer bleeding. That’s crucial when you’re courting the public markets.
5. Strategic Use of IPO Proceeds
5.1 Cloud Infrastructure & Technology
₹120 crore will go into cloud scaling. Why? Because global clients want reliability, speed, and security—not excuses.
5.2 Research and Development
₹151.5 crore earmarked for R&D. Think personalization engines, tighter AI loops, and slicker integrations. This isn’t about keeping up—it’s about setting the pace.
5.3 Hardware & Infrastructure
₹10.3 crore for machines and systems. Not glamorous, but necessary to keep the engine running without hiccups.
5.4 Future Acquisitions
The rest? M&A fuel. Capillary is clearly eyeing expansion into complementary verticals or geographies that can add heft.
6. Industry Landscape and Market Trends
6.1 Growth of SaaS in India
India’s SaaS market could hit $50 billion by 2030. Enterprise-grade platforms are driving that surge, and Capillary sits right in the sweet spot: loyalty and customer engagement.
6.2 Pandemic-Era Digital Acceleration
COVID-19 forced brands to digitize or die. Customer experience suddenly mattered more than product pricing. Capillary swooped in with the right tools at the right time—and brands noticed.
7. Competitive Landscape
7.1 Direct Competitors
Capillary is up against names like Salesforce Loyalty Management, MoEngage, WebEngage, and Netcore. These guys own the West. Capillary? It’s laser-focused on emerging markets, where localized solutions beat cookie-cutter software.
7.2 Indirect Competition
Then there are the martech and CRM giants. But Capillary’s edge lies in its unified platform—AI-rich, built for omnichannel, and surprisingly agile.
8. Learnings for Startups and Entrepreneurs
8.1 Strategic IPO Timing
Pulling the IPO in 2021 wasn’t a loss—it was a chess move. Sometimes, waiting pays off. Capillary timed its comeback when its books looked strong and the market seemed ready.
8.2 Customer-Centric Product Development
Capillary didn’t chase trends. It built for what brands actually needed: long-term loyalty and customer stickiness. That’s the holy grail for recurring revenue.
8.3 Global Ambitions with Indian Roots
This is what Indian SaaS success looks like—born local, built global, and solving real problems at scale. Other startups, take notes.
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