Capillary Technologies India Limited IPO

14 Nov 2025 , 09:14 AM

Capillary Technologies India Limited is a Bengaluru-based Loyalty Tech SaaS platform. It enables consumer businesses to deliver seamless customer experiences across touchpoints. Its offerings include loyalty programme management, customer data unification, analytics and hyper-personalised campaign automation. Capillary caters to a diverse range of customers. These include big-box retailers, QSR chains, BFSI entities and consumer brands in India, the US, Singapore, UAE, Malaysia and Indonesia. The company has also grown its international presence through M&A in the US. The IPO is a combination of fresh issue and an offer for sale.

 

Offer details of the IPO

• Total Offer Size – The total size of the issue is INR 877.50 crore. It comprises a fresh issue of equity shares worth up to INR 345.00 crore, together with an offer for sale of up to INR 532.50 crore.
• The shares being sold by the existing shareholders are held by:
• Capillary Technologies International Pte. Ltd. (Promoter) – 8,540,738 shares
• Trudy Holdings (Investor) – 688,058 shares

Price Band: INR 549 to INR 577 per Equity Share

Book Running Lead Managers

• JM Financial Limited
• IIFL Capital Services Limited
• Nomura Financial Advisory and Securities (India) Private Limited

Consumer Services & The Opportunity For Loyalty Tech – Overview

Consumer sectors are witnessing a significant structural shift. This is fuelled by increasing digital proliferation, rising disposable incomes, urbanisation and changing consumer aspirations. Industries such as Quick Service Restaurants (QSR), Travel & Hospitality, BFSI, Healthcare, CPG, and Energy have emerged as the backbone of the modern consumer-led economies. Moreover, they are no longer served by siloed technology platforms. Their needs for personalisation and convenience have unified into a core demand to drive customer loyalty and lifetime value.

Table: Key Segments Driving Demand for Loyalty Tech

Segment	Description
Retail	Represents both online and offline versions of durable and nondurable goods as omni-channel is becoming more common.
QSR	Commercial formats: Fast-food chains, cloud kitchens and delivery-focused brands, and cafeterias catering to the on-the-run urban consumer.
Travel & Hospitality	Provides lodging, travel and experience-based services to leisure and corporate customers. Reopening momentum seems strong post-COVID.
BFSI	Covers retail banks, digital payments, credit cards and InsurTech – AI underwriting, which allows for frictionless customer onboarding.
Healthcare	Hospitals, telemedicine, diagnostics and digital health platforms are all part of the forward drift as growing awareness and government-mandated digitisation pave the way.
CPG	Consists of food, drinks, personal care and home products that consumers use frequently and are more likely to be loyal to a recognised brand.
Energy (Retail)	Specialises in consumer energy delivery, including power and fuel sales with enhanced billing and sustainability options.

Source: RHP

Together, these fast-growing industries are undergoing digital transformation and driving the need for loyalty tech.

 

Table: Industry Growth Rates (Past & Future)

Industry	Past CAGR (FY2023–FY2025)	Future CAGR (FY2025–FY2029P)	Comment
Retail	22.1%	10.5%	Moderating growth as market saturates; premiumisation and omni-channel are growth drivers.
Healthcare	148.2%	18.7%	Strong growth in the past due to the adoption of digital health and post-pandemic demand. Robust future outlook given increased spend on healthcare, insurance penetration rates and potential for telemedicine scaling.
BFSI & Telecommunications	40.9%	14.3%	UPI, and digital wallet, plus InsurTech innovation-led frenzied expansion, are moderating as the regulatory ecosystem matures and customer acquisition costs increase.
Consumer Packaged Goods (CPG)	22.5%	9.8%	Sustainable growth, driven by urbanisation and brand migration, e-commerce penetration and subscription models, offers exciting development in this sub-sector.
Travel & Hospitality	558.3%	22.4%	Post-COVID recovery led to exaggerated growth. Resurgence in business travel and experiential products (such as staycations, wellness tourism) is leading to healthy future growth.
Energy Retail	10.2%	6.1%	Growth is decelerating due to regulatory-led headwinds. Digital billing and green energy expansion are driving incremental growth.
QSR	38.6%	12.9%	Delivery platforms & cloud kitchens increasing momentum; growth now contained by labour cost/margin pressure, but volume growth remains solid.

Source: RHP

 

Key Takeaways:

• Retail and CPG still lead in total revenue contribution.
• Healthcare and Travel & Hospitality are the top growing verticals, indicating good prospects.
• BFSI and QSR are transitioning from hyper-growth to sustainable scaling.
• Energy Retail is structurally challenged, and growth momentum has slowed.
• The intersection of AI-powered personalisation, digital payments and subscription-based engagement models is reshaping competitive advantage in every consumer-facing industry.

 

Capillary Technologies Limited – Overview

Capillary Technologies India Ltd is a Bangalore-based loyalty SaaS solutions provider. It was founded in 2008 by Aneesh Reddy and has a presence in multiple geographies. Its offerings focus on serving retail and consumer brands with its AI-driven loyalty and customer engagement platform.

Key Relationships with Entities

• Capillary Pte. Ltd.(Singapore): 100% directly held subsidiary which is the APAC hub and possesses considerable net assets.
• Capillary Technologies, LLC (USA): 100% subsidiary, formerly known as Persuade Loyalty LLC, acquired to bolster the company’s presence in North America.
• Brierley & Partners USA Inc. (USA): Acquisition to enhance Capillary’s enterprise loyalty offerings and customer base.
• Capillary Technologies DMCC (UAE): 100% subsidiary to serve the Middle East footprint.
• Capillary Technologies Europe Limited (UK): Founded in 2023 as a wholly owned entity managing European customers.
• Regional Subsidiaries: Stakes in other wholly owned entities in Malaysia and Indonesia, that provide local delivery and sales services.
• Cloud & Technology Partnerships: Works with AWS, Google Cloud and Microsoft Azure to host and serve its SaaS offering.
• Investor Relations: Originally financed by CTIPL (Previously Solus Investments Pte. Ltd.) and other venture capital investors.

 

Competitive Positioning

Capillary Technologies has a strong advantage in emerging markets, with its integrated product suite and modern technology stack. IP risk, operational complexity across geographies, and uneven profitability are challenges that the company needs to navigate. The firm’s capacity to grow outside of APAC, assimilate acquisitions efficiently and navigate regulation will be key to maintaining its competitive position and growth trajectory.

Strengths

1. AI-Powered SaaS Platform: Capillary’s AI-powered proprietary cloud delivers Customer Insights, Personalised Engagement and Real-time Loyalty to Web and e-commerce models.
2. End-to-End Loyalty Solution: Unlike point-solution competitors, Capillary provides a complete package – from data unification and rewards engine to campaign orchestration, making it lighter on integration for clients.
3. Strong Brand in APAC: The company has excellent trust and brand recall with large retail and FMCG clients in India and Southeast Asia, driven by strong client retention, cross-sell and referrals.

Weaknesses

1. IP and Tech Risk: Protection of intellectual property, including costs associated with litigation or risk of technology being used improperly.
2. Significant Geographical Concentration: A large portion of the assets, revenues and risks is concentrated in India , with several overseas subsidiaries not having turned profitable.
3. Increased Opex: Increasing AI/ML, R&D weigh on margins against competitive pricing.

Financial Profile

Strong Revenue Growth:  Capillary’s net revenue increased significantly from ₹2,070.86 mn in FY 2023 to ₹4,833.97 mn in FY 2024 and then to ₹5,982.59 mn in FY 2025. This represents an impressive CAGR of nearly 70% between FY 2023-25. Net sales in the First Half of 2025 amounted to ₹3,592.18 million . This is a 25.1% growth YoY over the same period in FY24. Overall, the company demonstrates significant momentum in subscription-driven revenue growth.

 

Table: Key Drivers of Revenue Growth

Key Revenue Driver	Summary
Enterprise Customer Focus	Revenue from enterprise clients grew from ₹2,342.97M (91.75%) in FY 2023 to ₹5,818.44M (97.26%) in FY 2025, improving revenue quality and predictability.
Subscription Model	Multi-year (12–60 months) contracts create stable recurring revenue with strong upsell and cross-sell contributions.
New Vertical Expansion	Growth into healthcare, CPG, BFSI, and manufacturing adds long-term revenue pipelines.
Net Revenue Retention	Strong retention and expansion from existing customers, reflected in growing New ACV.
Operational Scale	Platform handles 1.82B consumers and 15.67B transactions, enabling scale-driven leverage.

Source: RHP

Improved Profitability: Capillary achieved a significant turnaround in profitability with EBITDA margins improving from -22.84% in FY 2023 to 13.13% in FY 2025, driven by positive operating leverage and disciplined control over costs. Sales and marketing spending decreased materially during that period, driven by lower acquisition costs and higher retention of customers.

 

Table: Peers Comparison

Name of the Company	Revenue from operations (₹)	EPS (Basic) (₹)	EPS (Diluted) (₹)	P/E	NAV per Equity Share (₹)
Capillary Technologies	5,982.59	1.93	1.91	302.09*	65.03
Salesforce, Inc.	31,82,153.41	540.79	534.07	40.07	5,441.60
Adobe Inc.	17,96,333.97	1,038.29	1,032.44	28.60	2,650.28
HubSpot, Inc.	2,19,869.21	7.53	7.53	NA	3,153.16
Braze, Inc.	49,830.36	(85.65)	(85.65)	NA	402.61

Source: RHP; * – based on upper end of price band

 

Table: KPI Comparison

Company	Particulars (Units)	FY23	FY24	FY25	CAGR
Capillary Technologies	Revenue from Operations (₹ mn)	2,553.72	5,251.00	5,982.59	53%
	Net Revenue (₹ mn)	2,070.86	4,833.97	5,982.59	–
	Net Revenue Growth (%)	51.69%	133.43%	23.76%	–
	EBITDA Margin (%)	(22.84%)	(0.28%)	13.13%	–
	EBITDA Margin (Net Revenue) (%)	(28.17%)	(0.31%)	13.13%	–
	Adjusted EBITDA (₹ mn)	(62.13)	(11.29)	745.01	–
	Adjusted EBITDA Margin (%)	(2.43%)	(0.22%)	12.45%	–
	Adjusted EBITDA Margin (Net Revenue) (%)	(3.00)%	(0.23)%	12.45%	–
	PBT Margin (Net Revenue)(%)	(45.82)%	(15.57)%	1.79%	–
	PAT (Continuing Operations) (₹ in mn)	(885.56)	(683.51)	141.54	–
	PAT Margin (%)	(34.68)%	(13.02)%	2.37%	–
	PAT Margin as % of Net Revenue	(42.76)%	(14.14)%	2.37%	–
	Annual Recurring Revenue (ARR) ( ₹ in mn )	2,536.03	5,460.07	6,083.33	55%
	PBT (₹ mn)	(948.89)	(752.60)	106.82	–
	PBT Margin (%)	(37.16%)	(14.33%)	1.79%	–
Salesforce, Inc.	Revenue from Operations (₹ mn)	2,485,514.64	2,882,879.46	3,182,153.41	13%
	PBT (₹ mn)	52,323.29	409,394.19	624,590.50	246%
	PBT Margin (%)	2.00%	14.00%	20.00%	–
Adobe, Inc.	Revenue from Operations (₹ mn)	1,374,389.86	1,602,148.90	1,796,333.97	14%
	PBT (₹ mn)	469,006.83	561,235.01	578,953.30	11%
	PBT Margin (%)	34.12%	35.03%	32.23%	–
Braze, Inc.	Revenue from Operations (₹ mn)	28,175.30	39,020.64	49,830.36	33%
	PBT (₹ mn)	(11,111.80)	(10,625.39)	(8,447.84)	–
	PBT Margin (%)	(39.44%)	(27.23%)	(16.95%)	–
HubSpot, Inc.	Revenue from Operations (₹ mn)	136,146.06	179,260.80	219,869.21	27%
	PBT (₹ mn)	(8,234.35)	(12,437.48)	2,399.65	–
	PBT Margin (%)	(6.05%)	(6.94%)	1.09%	–

Source: RHP