The IPO comprises of fresh issue of worth ₹500 crore and an Offer-for-Sale (OFS) of ₹1750 crore, giving a chance to some investors to partially exit, like Warburg Pincus, Peak XV Partners, and American Express Ventures. In 2021, the company Capillary Technologies decided to launch its IPO; however, after experiencing weak market conditions, the company postponed the idea, and after three years, they are planning to hit the stock market again.
Capillary Technologies started its business in 2008 with the help of IIT Kharagpur alumni Aneesh Reddy, Ajay Modani, and Krishna Mehra. Over the years, the company expanded its business into more than 30 countries with supporting 120 loyalty programs. Tata Group, Domino’s, Shell, Puma, Marks & Spencer, Indigo, and Al-Futtaim are some of the major clients of the company.
In FY24, the company generated a revenue of ₹600 crore, showcasing a drastic jump in revenue of 80% from last year. With net losses reduced to ₹59 crore, presenting a 33% improvement in the losses. By FY25, the company is planning to reach a revenue of ₹650 crore with 15% EBITDA margins.
The company has successfully raised $140 million (Rs 1,201 crore) in 2023 in its Series D round, with $95 million coming from secondary share sales. Pantheon, 57Stars, and Unigestion are the new investors who joined the company. Till now, the company has raised a total funding of over $240 million.
The parent company of Capillary’s which owns 98% of its Indian business, is currently located in Singapore. Which means the SEBI and the Indian government are closely monitoring foreign ownership in tech startups. This is necessary, especially when the company is shifting its base to India or has foreign holding structures.
Currently, when India’s tech and Saas sectors are in talks, the company chooses the perfect timing to hit the market with its IPO. Razorpay, Lenskart, Groww, Shiprocket, PhysicsWallah, boAt, Urban Company, and around 20 other startups are also planning to launch their IPO in 2025. The company is targeting a valuation between $500 million and $1 billion ( ₹4,290 crore to ₹8,580 crore).
