IPO Watch: Capillary Technologies India refiles draft papers to raise funds via IPO

Bengaluru, June 19, 2025 — Capillary Technologies India Ltd., a leading provider of customer loyalty and engagement solutions, has refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking a fresh step in its plan to tap the capital markets. This move comes nearly three years after the company’s initial IPO filing in 2021, which was eventually shelved amid market volatility and strategic shifts.

The company aims to raise fresh capital to support business expansion and growth initiatives through the IPO route. With this refiling, Capillary joins a growing list of tech-driven enterprises keen to leverage India's bullish equity markets.

IPO Structure and Objectives

According to the revised DRHP filed with SEBI, Capillary Technologies plans to raise fresh funds through a fresh issue of shares worth ₹150 crore, alongside an offer-for-sale (OFS) component of up to 1.5 crore equity shares by existing shareholders and investors. The final size of the IPO and pricing details will be determined closer to the launch date, subject to regulatory approvals and market conditions.

The proceeds from the fresh issue are expected to be utilized primarily for debt repayment, product development, and global expansion, the company noted in the filing. A portion may also be allocated to working capital and general corporate purposes.

Company Overview: A SaaS Pioneer in Loyalty Management

Founded in 2012 by IIT-Kharagpur alumni Aneesh Reddy and Krishna Mehra, Capillary Technologies has carved a niche in the Software-as-a-Service (SaaS) space, offering solutions in customer engagement, loyalty management, and AI-driven marketing analytics. The Bengaluru-headquartered firm has a global footprint across Southeast Asia, the Middle East, the U.S., and South Africa.

Capillary boasts a high-profile clientele, including brands like Tata, Domino’s Pizza, Puma, Pizza Hut, Shell, and Al-Futtaim. Its services are used by more than 250 million customers globally, with over 100 loyalty programs managed across sectors.

Analyst View: A Strategic Move Amid SaaS Momentum

Market analysts believe the timing of Capillary’s refiling reflects growing investor appetite for scalable tech-enabled platforms.

“The Indian SaaS market has matured significantly, and Capillary’s decision aligns well with the current investor sentiment that favours subscription-based revenue models and customer retention technologies,” said Ravi Narayan, partner at MarketBridge Capital. “The company’s focus on loyalty tech gives it a moat in retail-heavy regions like India and the Middle East.”

The broader tech IPO space in India, which had seen subdued activity over the past year, is showing signs of revival. Analysts suggest Capillary’s IPO could benefit from the renewed enthusiasm, particularly after successful listings of companies like TBO Tek and FirstCry in 2025.

Financial Performance Snapshot

As per the company’s filing, Capillary Technologies has shown steady revenue growth, backed by increasing demand for digital transformation tools across industries. For the financial year ending March 2024, the company reported:

• Revenue from operations: ₹230 crore (up 22% YoY)

• EBITDA: ₹38 crore

• Net Profit: ₹14.5 crore

• Debt: ₹52 crore

The company has also turned EBITDA-positive over the last two financial years, demonstrating operational efficiency and customer stickiness.

PE Investors and Existing Stakeholders

Several marquee investors hold stakes in Capillary Technologies, including Warburg Pincus, Sequoia Capital, and Filter Capital. Some of these investors are likely to participate in the offer-for-sale component of the IPO. The refiled DRHP outlines their plans to partially exit and unlock value while retaining a strategic interest in the company.

Market Context: Tech IPO Resurgence on the Horizon

Capillary’s refiling comes at a time when Indian stock markets are riding record highs, driven by robust macroeconomic indicators, rising retail participation, and increased foreign inflows.

The Nifty IT index has gained nearly 18% year-to-date, indicating strong sentiment for technology-driven firms. With increased digitalization across sectors and the rise of AI-powered business models, SaaS companies with a recurring revenue base are in favour again.

“Capillary is well-placed to capture post-pandemic demand for digital customer engagement tools,” said Amit Khurana, Head of Equities at Dolat Capital. “The IPO, if priced well, could receive strong interest from institutional and retail investors alike.”

Investor Outlook: Opportunities and Risks

Investors considering Capillary Technologies’ IPO will be evaluating both its growth potential and execution capabilities. Key positives include:

• Robust client base with global diversification

• Scalable SaaS model with subscription revenue

• High-margin loyalty management solutions

• Resilience amid digital transformation tailwinds

However, challenges remain in the form of:

• Intense competition from global CRM and loyalty solution providers

• Currency and geopolitical risks in offshore markets

• Continued reliance on enterprise clients for bulk revenues

Overall, the IPO presents an opportunity for investors looking to gain exposure to India’s expanding SaaS ecosystem, with Capillary offering a unique play on brand loyalty and data-driven marketing.

What’s Next?

SEBI’s approval is awaited following due diligence, post which Capillary Technologies will announce its IPO timeline, price band, and anchor book details. If successful, the company could be listed in the second half of FY26.

As Indian tech firms recalibrate their listing strategies after a period of consolidation, Capillary Technologies’ second shot at public markets could set the tone for other SaaS IPOs waiting in the wings.