Capillary Technologies, an omnichannel engagement and commerce solutions platform, is reportedly set to relaunch its initial public offering (IPO) preparations, eyeing a public offering of around $200 million (approximately INR 1,700 crore). Sources close to the company revealed that Capillary is expected to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) by June 2025. This marks a significant shift from its previous attempts, with the company poised to raise a much larger sum compared to its earlier plans in 2021.
A Fresh and Bigger IPO Plan
Capillary Technologies, which initially filed its DRHP in 2021 with plans to raise $114 million (around INR 850 crore), is now aiming to nearly double its offering size. This decision comes as a result of the company’s remarkable growth in both revenue and financial performance. The current IPO plans indicate that Capillary is looking to raise between $12 million and $24 million through a fresh issue of shares. The remaining portion of the IPO will be an offer for sale (OFS), in which existing investors and the promoter group will offload their stakes.
The promoter group and investors who joined the cap table in recent years will be selling part of their holdings in this offering. While Capillary has not finalized its valuation, sources suggest that the company is targeting a valuation of at least $500 million, with some reports indicating a potential valuation range of $500 million to $1 billion. This valuation represents a significant increase from its previous market standing, signaling the company’s stronger position and investor interest.
Capillary Technologies is not expected to raise a pre-IPO round, which further highlights the company’s current financial health and its reduced dependency on additional funding at this stage. The decision to forgo a pre-IPO round is also indicative of the company’s strong liquidity position and the belief that the IPO itself will provide sufficient capital for its future plans.
Financial Growth and Performance
Capillary’s impressive financial performance has been one of the primary factors behind the revised IPO offering size. According to sources, Capillary Technologies is projected to close the ongoing financial year with an estimated revenue of INR 650 crore and an EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of about 15%. This marks a dramatic growth trajectory for the company, particularly when compared to its revenue of INR 123.1 crore in FY21. The projected revenue growth indicates a more than 5x increase in a span of just a few years, showcasing Capillary’s success in scaling its operations.
The improved financials have given the company the confidence to significantly increase its IPO size. Sources within the company noted that the startup’s revenue growth allowed it to raise the offer size, as it no longer needed to raise as much fresh capital through the IPO. By not needing to rely heavily on new capital, Capillary can focus on expanding its business and enhancing its platform while still generating funds through the offer for sale (OFS).
The Company’s Journey and Growth
Founded in 2008 by Aneesh Reddy, Capillary Technologies began as a customer loyalty and engagement platform and quickly grew to become a global player in omnichannel commerce solutions. The company provides a suite of tools for businesses to connect with customers through multiple channels, enhancing the customer experience and driving sales across digital and physical touchpoints. Its product suite includes solutions for marketing automation, customer engagement, data analytics, and commerce.
Capillary’s omnichannel engagement and commerce offerings have been crucial for its expansion into various global markets, including India, Southeast Asia, the Middle East and North Africa (MENA) region, and the United States. The company’s growth has been propelled by its innovative approach to helping businesses enhance their customer relationships, especially through personalized marketing and data-driven strategies. Its ability to adapt to changing consumer behavior and integrate various sales and marketing channels into a seamless platform has positioned Capillary Technologies as a leader in its industry.
Over the years, the company has garnered significant investor interest, attracting marquee names such as Avataar Ventures, Filter Capital, and Peak XV Partners. Its ability to secure these high-profile investors further underscores its growth potential and strong market position.
In its most recent funding round, Capillary Technologies closed its Series D funding at $140 million. Notably, a large portion of this round—around $95 million—was allocated to secondary transactions, allowing existing investors and former employees to exit partially. This move opened the door for new investors to come on board and join the company’s cap table. These new additions not only bolstered Capillary’s investor base but also provided additional financial stability and credibility as the company readies itself for a public listing.
Capillary’s Strategic Position
Capillary Technologies has positioned itself as an essential technology partner for businesses looking to enhance their customer engagement and optimize their sales processes. The company’s focus on providing omnichannel solutions places it in a competitive position within the broader customer relationship management (CRM) and e-commerce technology sectors.
In addition to its strong financial growth, Capillary’s diverse customer base across multiple geographies has helped it build a robust global presence. This extensive market reach makes the company an attractive option for investors looking to capitalize on the growing demand for customer engagement and omnichannel commerce solutions, particularly in emerging markets like India and Southeast Asia.
Capillary’s strategic positioning in the CRM and e-commerce sectors aligns with the growing global trend of businesses increasingly relying on technology to enhance customer experience and drive business outcomes. With digital transformation and automation continuing to shape industries worldwide, Capillary’s platform has become essential for businesses looking to stay competitive in the digital age.
IPO Expectations and Outlook
Capillary Technologies’ decision to restart its IPO preparations comes as the company continues to see strong revenue growth and improved profitability. The planned offering is expected to provide the company with the necessary capital to support its expansion initiatives, including investments in product development, marketing, and enhancing its technology infrastructure. The IPO proceeds will also help strengthen its balance sheet and position the company for future growth in both existing and new markets.
The market is closely watching Capillary’s IPO plans, as the company’s success could serve as an indicator of investor confidence in the Indian SaaS (software as a service) and tech-driven solutions space. Given the company’s strong financials, loyal customer base, and market positioning, Capillary Technologies appears well-positioned to succeed in its IPO and make a successful transition into a publicly traded company.
Despite the challenges and competition in the tech sector, Capillary’s ongoing growth and expansion suggest that the company is poised to continue its upward trajectory. As Capillary prepares to take the next step in its journey, it remains focused on delivering value to its customers while driving innovation and growth within the omnichannel engagement space.
