Capillary Technologies turns profitable in FY25

Customer loyalty and engagement solutions provider Capillary Technologies has filed its Draft Red Herring Prospectus (DRHP) with SEBI as it gears up for a public listing. The document offers a detailed view into the company’s financials, revealing a sharp turnaround in FY25.

Capillary Technologies’ operating revenue rose 14% to Rs 598 crore in FY25, compared to Rs 525 crore in FY24, as per data disclosed in the DRHP.

Capillary Technologies follows a B2B SaaS model, earning revenue through subscriptions and services for its loyalty and customer engagement platform used by global brands to enhance retention and personalization.

Most of the company’s revenue is through subscription-based software services, which contributed over 80% of the total, growing nearly 20% year-on-year to reach Rs 481 crore in FY25, from Rs 402 crore in FY24. The remaining Rs 117 crore came from other streams such as services and integration-linked fees.

From a regional perspective, North America emerged as Capillary’s largest revenue contributor, accounting for 56.6% of the total revenue in FY25, up from 48% in the previous fiscal. EMEA (Europe, Middle East, and Africa) made up 19%, while Asia-Pacific’s share declined to 24% from 33% in FY24.

While a detailed expense breakdown isn’t disclosed, the company’s return to profitability suggests improvements in cost structure and stronger monetization of its offerings. The company posted net profit of Rs 14 crore in FY25, a significant improvement from the Rs 68 crore loss in FY24. Meanwhile, its EBITDA stood at Rs 78.5 crore in FY25, with a margin of 13%.

According to TheKredible, Capillary Technologies has raised a total of $239 million of funding till date, having Avaatar Ventures as its lead investor.

As Capillary moves closer to its IPO, the shift to profitability will likely be a key narrative for investors looking at the company’s long-term potential and scalability.