Capillary Technologies secures SEBI nod for IPO

Bengaluru-based Software-as-a-service (SaaS) firm Capillary Technologies has received the SEBI nod for its initial public offering (IPO). The approval allows the company to raise up to Rs 430 crore through a fresh issue of equity shares, alongside an offer for sale (OFS) of up to 1.83 crore shares by existing investors.

The company had filed its Draft Red Herring Prospectus (DRHP) in June this year. The IPO is expected to be listed on both the BSE and NSE, with JM Financial, IIFL Capital, and Nomura Financial Advisory appointed as the book-running lead managers.

Founded in 2008 by Aneesh Reddy, Krishna Mehra, and Ajay Modani, Capillary offers cloud-native loyalty, CRM, and engagement solutions to over 390 brands across 46 countries, including Tata Digital, Aditya Birla Fashion, and Abbott Labs.

The IPO proceeds are planned to be deployed across cloud infrastructure expansion, research and development, procurement of IT systems, and strategic acquisitions, along with general corporate purposes.

As per the DRHP, Capillary Technologies International Pte Ltd, the promoter, holds a 65.47% stake in the company. Ronal Holdings and AVP Fund (Avataar Ventures) follow with holdings of 7.53% and 5.51%. Trudly Holdings and Filter Capital India own 4.49% and 3.66%, respectively.

On the financial front, Capillary Technologies has posted a strong FY25 performance, with revenue rising to Rs 598 crore, representing a 14% year-over-year growth. The company also turned into the black this fiscal year with Rs 14.1 crore profit, as compared to a loss of Rs 68 crore in FY24.

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