Highlights
Capillary Technologies Secures SEBI Approval for IPO
Bengaluru-based Software-as-a-Service (SaaS) firm Capillary Technologies has gained approval from SEBI for its upcoming initial public offering (IPO). This endorsement permits the company to raise up to Rs 430 crore through a new equity share issue, in addition to an offer for sale (OFS) of approximately 1.83 crore shares by existing investors. The Draft Red Herring Prospectus (DRHP) was submitted earlier in June. The IPO is set to be listed on both the BSE and NSE, with JM Financial, IIFL Capital, and Nomura Financial Advisory named as the leading book-running managers.
Overview of Capillary Technologies
Founded in 2008 by Aneesh Reddy, Krishna Mehra, and Ajay Modani, Capillary Technologies delivers cloud-native loyalty, CRM, and engagement solutions to over 390 brands across 46 countries, including notable names such as Tata Digital, Aditya Birla Fashion, and Abbott Labs.
Purpose and Use of IPO Proceeds
The funds raised from the IPO are intended for cloud infrastructure expansion, research and development, IT system procurement, and strategic acquisitions, in addition to various corporate purposes.
As detailed in the DRHP, Capillary Technologies International Pte Ltd, the promoter, possesses a 65.47% stake in the company. Following this, Ronal Holdings and AVP Fund (Avataar Ventures) hold shares of 7.53% and 5.51%, respectively. Trudly Holdings and Filter Capital India own 4.49% and 3.66% of the company.
Financial Performance
On the financial side, Capillary Technologies has reported a strong performance for FY25, with revenues climbing to Rs 598 crore, marking a 14% increase year-over-year. The company has also turned profitable this fiscal year, posting a profit of Rs 14.1 crore, in contrast to a loss of Rs 68 crore in FY24.
Funding and Investment
According to various sources, Capillary Technologies has successfully raised a total of $239 million in funding to date, with Avaatar Ventures serving as the primary investor.