Capillary Technologies picks Nomura, IIFL Capital and JM Financial for IPO 

Capillary had filed its draft IPO papers with the market regulator back in December 2021 but shelved those plans after the market had turned.

Software-as-a-service (SaaS) firm Capillary Technologies has hired Nomura, IIFL Capital Services (previously IIFL Securities) and JM Financial for its public market debut later this year, sources told Moneycontrol.

The company will file its draft papers for the iinitial public offering (IPO) papers sometime in the middle of the year and list towards the second half of 2025, one of sources cited above said. “The company will look to raise Rs 1,500 crore ($180 million) through a combination of primary capital and offer for sale (OFS),” a second source said.

While details are yet to be finalised, Capillary is likely to issue fresh shares worth around Rs 200-300 crore and the remaining Rs 1,200-1,300 crore will be through share sale, the second sources said.

Capillary Technologies, IIFL, Nomura and JM Financial did not reply to Moneycontrol’s queries.

The Bengaluru-based SaaS company, which provides customer engagement and loyalty software services to different companies, is back to tap the markets after more than four years. Capillary filed its draft papers with the market regulator in December 2021 but shelved the plans after the market turned.

Capillary has revived the plan at a time when at least 25 other new-age companies, including Groww, Lenskart and Zepto, are looking to list on the Indian bourses amid strong investor demand.

A slew of companies are lining up to go public after large ones like Swiggy listed on the exchanges and delivered handsome returns in 2024.

Capillary Technologies was founded in 2008 by IIT-Kharagpur alumni Aneesh Reddy, Ajay Modani and Krishna Mehra. While Modani and Mehra moved on from the business, Reddy continues to be the top boss.

The company, which has raised over $200 million from Warburg Pincus, Peak XV Partners, Qualcomm Ventures, Norwest Venture Partners, American Express and several others, manages the backend loyalty programmes of companies. Its clients include Tata Group, Aditya Birla Group, Domino’s, Shell and IndiGo.

A significant chunk of the company’s revenues comes from some of its larger customers. The company saw its revenues jump 80 percent year-on-year (YoY) to Rs 600 crore in FY24 and losses narrow 33 percent to Rs 59 crore in FY24, Tracxn, a private markets data provider, showed.