Capillary Technologies IPO Plans and Employee Incentives

Capillary Technologies, a leading loyalty management firm, is moving forward with its public listing. The Bengaluru-based company has obtained approval from its board to initiate a Rs 2,250 crore or $265 million Initial Public Offering (IPO).

The board at Capillary Technologies has adopted a special resolution to raise up to Rs 500 crore ($59 million) through a fresh equity issue and an offer for sale amounting to Rs 1,750 crore ($205 million), as per its regulatory filing from the Registrar of Companies.

Inc42 was the first to publish this information.

Expansion of Employee Stock Ownership Plan

In preparation for the IPO, the firm has significantly increased its employee stock ownership plan (ESOP) by 123%, growing it from 32.6 lakh to 72.91 lakh options. This new pool represents 9.04% of its overall share capital.

According to estimates by Startup Superb, this expanded ESOP pool is valued at approximately Rs 212 crore within a total pool size of Rs 384 crore.

About Capillary Technologies

Capillary Technologies was founded by Aneesh Reddy, Krishna Mehra, and Ajay Modani. As a Software-as-a-Service (SaaS) company, Capillary Technologies aids brands in enhancing customer loyalty. Their platform delivers insights that empower brands to provide real-time, personalised, and consistent experiences across various channels.

The firm operates in the US, India, the Middle East, and Asia, supporting over 100 loyalty programs and collaborating with more than 250 brands, including Tata, PUMA, Shell, and Al-Futtaim.

Funding and Strategic Growth Initiatives

Capillary Technologies has raised over $240 million to date, including a $140 million Series D round completed in February of the previous year. Of this amount, $20 million is allocated for employee payouts through the ESOP. Earlier this month, the company also broadened its reach in North America by acquiring Kognitiv, a provider of omnichannel loyalty solutions, as part of its strategic growth plan.