Capillary Technologies Receives SEBI Approval to Launch IPO

Capillary Technologies, a Bengaluru-based SaaS company known for its AI-driven customer loyalty and engagement solutions, has received approval from the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). This move allows the company to issue fresh equity and enable existing investors to partially exit via an Offer for Sale (OFS).

IPO Details and Fund Utilisation

According to the Draft Red Herring Prospectus (DRHP) filed in June 2025, Capillary Technologies plans to raise INR 430 crore through a fresh issue and conduct an Offer for Sale (OFS) of up to 1.83 crore shares by existing shareholders. The OFS will see investors such as Ronal Holdings, Trudly Holdings, Filter Capital India, and Avataar Ventures partially offload their stakes.

The funds from the public issue will be used for:

• Expanding cloud infrastructure and IT systems
• Investing in research and development
• Supporting potential acquisitions
• Meeting general corporate needs

JM Financial, IIFL Capital, and Nomura Financial Advisory are the book-running lead managers for the IPO. The company’s shares are expected to be listed on both the BSE and NSE.

Company Overview and Growth

Founded in 2008 by Aneesh Reddy, Krishna Mehra, and Ajay Modani, Capillary Technologies provides cloud-native loyalty management and customer engagement solutions to enterprises. Over the years, the company has grown into a leading SaaS provider, catering to more than 390 brands across 46 countries, including Tata Digital, Domino’s, Aditya Birla Fashion, Arvind Fashion, and Abbott Labs.

The company’s major shareholder is Capillary Technologies International Pte Ltd, which holds about 65.47%, while other investors include Ronal Holdings (7.53%), Avataar Ventures (5.51%), Trudly Holdings (4.49%), and Filter Capital India (3.66%).

Financial Performance and Market Context

As per its financial statements and DRHP, Capillary recorded a revenue of around INR 598 crore in FY25, a growth of approximately 14% year-on-year. The company also returned to profitability, posting a net profit of about INR 14.1 crore, compared to a loss in FY24.

The positive turnaround follows Capillary’s renewed focus on international markets and enterprise clients. Industry analysts view this as a key moment for India’s SaaS ecosystem, as few SaaS companies have successfully gone public domestically.

Capillary had earlier planned an IPO in 2021 but deferred it due to volatile market conditions. Its renewed attempt aligns with improving investor appetite for tech-driven enterprise firms.

Why This IPO Matters

Capillary’s IPO could mark a significant step for India’s enterprise software sector. It not only offers a liquidity event for early investors but also signals growing investor confidence in SaaS-based business models.

If the listing performs well, Capillary Technologies could pave the way for more Indian SaaS companies to explore public markets, a space still dominated by traditional sectors like banking, manufacturing, and consumer goods.

With SEBI’s approval now in hand, the company will move towards setting its IPO price band, opening and closing dates, and finalising its roadshow plans