SaaS firm Capillary Technologies India refiles for IPO, plans Rs 430 crore fresh issue

Capillary Technologies India IPO

Bengaluru-based software-as-a-service (SaaS) firm Capillary Technologies India has filed preliminary papers with the SEBI on June 18, to raise funds via initial public offering (IPO).

The IPO will comprise fresh issuance of shares worth Rs 430 crore, and an offer-for-sale (OFS) of 1.83 crore shares by existing shareholders including promoter Capillary Technologies International Pte which holds 65.47 percent stake in the company.

Along with investors - Ronal Holdings LLC, Trudy Holdings, and Filter Capital India Fund I -, Sripathi Venkata Ramana Reddy, Harminder Sahni Individual, Adarsh Reddy B Individual, Sudhakar Reddy Katanguri, Sripathi Damodar Reddy, and Manjunath Nanjaiah will be other selling shareholders in the OFS.

Total promoters' shareholding in the SaaS products and solutions provider stands at 67.90 percent, and the remainder 32.1 percent shares are owned by public shareholders.

Moneycontrol was the first to report in January this year that Capillary has picked JM Financial, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) as merchant bankers for managing its IPO.

Earlier, the company had filed its draft papers with the capital markets regulator in December 2021 but shelved the plans due to weak market conditions.

Capillary Technologies will spend Rs 120 crore out of fresh issue proceeds for cloud infrastructure. Further, Rs 151.5 crore will be utilised for research, designing and development of products and platform, and Rs 10.3 crore for purchase of computer systems.

The software product company offering loyalty management, customer relationship management (CRM) and customer engagement solutions does not have listed comparable peer in India. It competes with global listed entities like Salesforce, Adobe, HubSpot, and Braze Inc.

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.

On the financial front, Capillary has turned profitable in the fiscal 2025 with net at Rs 13.3 crore against loss of Rs 59.4 crore in the previous fiscal. Revenue FY25 grew by 13.9 percent to Rs 598.3 crore, compared to Rs 525.1 crore in the previous year.

The merchant bankers appointed to manage the Capillary Technologies IPO are JM Financial, IIFL Capital Services, and Nomura Financial Advisory and Securities (India).