Capillary Technologies India files DRHP for IPO

Bengaluru, June 18, 2025: Capillary Technologies India Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The IPO issue comprises a fresh issue of equity shares worth ₹430 crore and an offer for sale (OFS) of up to 1.83 crore equity shares. The equity shares have a face value of ₹2 each and will be listed on both the NSE and BSE.

The offer includes a reservation for eligible employees, and the company may also explore a pre-IPO placement of up to ₹86 crore, which would reduce the size of the fresh issue accordingly.

IPO Snapshot

Use of Proceeds

The net proceeds from the fresh issue will be utilised as follows:

• ₹120 crore for cloud infrastructure costs
• ₹151.5 crore for research, design and development of products and platforms
• ₹10.3 crore for the purchase of computer systems
• Balance towards unidentified acquisitions and general corporate purposes
  (subject to a 35% cap on combined usage for the latter two, as per SEBI ICDR Regulations)

Capillary Technologies India: Company Overview

Capillary Technologies, founded in 2012 and headquartered in Bengaluru, is a software product company offering artificial intelligence-based, cloud-native Software-as-a-Service (SaaS) solutions. Its product suite includes:

• Loyalty+: AI-driven loyalty management
• Engage+: Connected engagement platform
• Rewards+: Rewards management
• Insights+: Predictive analytics
• Customer Data Platform (CDP)

The company serves enterprise customers globally across the retail, telecom, banking, financial services, and insurance (BFSI), and healthcare sectors.

Financial Highlights (₹ in million)

Key Considerations For Investors

Risk Disclosures

• Revenue Concentration:
  In FY25, 43.35% of revenue came from the top five customers. A loss or reduction in business from these key clients may materially affect financial performance.
• Past Losses:
  The company incurred net losses of ₹877.19 million in FY23 and ₹593.78 million in FY24. Although it reported a profit in FY25, investors may consider historical performance.
• Geographic Dependency:
  North America contributed 56.59% of revenue in FY25. Economic or regulatory shifts in this region may impact earnings.
• Revenue Recognition Shift:
  In FY25, the company moved to net revenue accounting for campaign services. Prior years’ reported gross revenue affected year-over-year comparability.

Business Strengths

• Returned to profitability in FY25
• Scalable SaaS platform with global enterprise clientele
• Active in verticals with sustained digital transformation trends
• Expanded international presence via acquisitions

Promoters And Offer Details

The promoters of Capillary Technologies International Pte. Ltd. and Mr. Aneesh Reddy Boddu. The Offer for Sale (OFS) component of the IPO includes shares from the promoter group, alongside existing investors such as Ronal Holdings LLC, Trudy Holdings, and Filter Capital India Fund I.

Listing & Timelines

The equity shares will be listed on both NSE and BSE. The bid/offer opening and closing dates, price band, and lot size will be announced in due course in line with SEBI regulations.

Future Outlook For Capillary Technologies

Capillary Technologies appears well-positioned for growth, having returned to profitability in FY25 and maintaining strong revenue momentum. With a scalable SaaS product suite, a growing international footprint, and a focus on AI-driven loyalty and engagement tools, the company is tapping into global digital transformation trends. However, investors should monitor its client concentration and reliance on the North American market, which may pose risks in the medium term. Continued investment in R&D and infrastructure suggests a forward-looking, innovation-led strategy.

REF: https://www.bseindia.com/corporates/download/309650/IPO Prior/DRHP_20250618185409.pdf

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