The much-anticipated initial public offering (IPO) of Capillary Technologies, a leading provider of AI-driven loyalty management solutions, is set to open for public subscription this Friday, November 14. The subscription window will remain active until Monday, November 18, offering investors a chance to participate in this growing SaaS venture.
IPO Structure and Key Details
The ₹877.50 crore issue comprises two components: a fresh issue of 0.60 crore shares aggregating to ₹345 crore and an offer for sale (OFS) of 0.92 crore shares aggregating to ₹532.50 crore by existing shareholders. The allocation is strategically divided, with 75% reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and the remaining 10% for Retail Investors.
Investors should note that the price band has been fixed at ₹549–577 per share. With a lot size set at 25 shares, retail investors will need a minimum investment of ₹14,425 to participate. The mainboard IPO is proposed to list on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), with tentative listing scheduled for Friday, November 21.
Company Profile and Market Position
Capillary Technologies stands out as a software company providing artificial intelligence (AI)-driven, cloud-native Software-as-a-Service (SaaS) products. The company primarily serves enterprise customers worldwide, helping them build loyalty among consumers and channel partners. It ranks among the few comprehensive players in the loyalty management sector offering end-to-end solutions.
The company's diverse product suite includes an advanced loyalty management platform (Loyalty+), connected engagement platform (Engage+), predictive analytics platform (Insights+), rewards management platform (Rewards+), and customer data platform (CDP). These integrated solutions enable clients to design complete loyalty programs, gain deep consumer insights, and execute unified cross-channel strategies that deliver personalized, consistent customer experiences.
Capillary's impressive client portfolio features major names including Tata Digital, ABFRL, Domino's Pizza Indonesia, PT Blue Bird Tbk, Aditya Birla Fashion Limited, Arvind Fashions Limited, Metro Brands Limited, Puma Sports India Private Limited, Vishal Mega Mart, and InterGlobe Aviation Limited.
Financial Performance and Growth Strategy
The company has demonstrated remarkable financial turnaround and consistent growth. For the financial year ended March 31, 2025, Capillary reported total income of ₹611.87 crore, showing significant improvement from ₹535.44 crore in FY24 and ₹266.25 crore in FY23.
More impressively, the company achieved EBITDA of ₹78.57 crore in FY25, marking a dramatic recovery from negative ₹1.49 crore in FY24 and a ₹58.34 crore loss in FY23. The profitability story continues with the company posting a net profit of ₹14.15 crore in FY25, compared to net losses of ₹68.35 crore in FY24 and ₹88.56 crore in FY23.
The company's diversification into new verticals such as healthcare, CPG, and BFSI has yielded positive results. Revenue contribution from these segments surged from 16.65% in FY23 to 46.48% in FY25 before moderating to 42.01% in H1 FY26. Notable additions to their client base include an American healthcare firm, Polycab India, and a European bank.
According to the company's Red Herring Prospectus citing a Zinnov Report, the total addressable market for loyalty management is estimated at USD 16.6 billion in fiscal 2024 and is expected to reach USD 26.8 billion by fiscal 2029, projecting a 10% growth rate. The Asia-Pacific region is particularly promising, projected to grow at 18.7% during this period.
Capillary's growth strategy focuses on three key areas: maximizing organic growth through improved Net Revenue Retention using a 'land and expand' approach, acquiring new customers, and pursuing inorganic growth via integration of complementary technologies and entry into new customer segments.
IPO Timeline and Utilization of Proceeds
The allotment of shares is expected to be finalized on Wednesday, November 19. The company will initiate refunds on Wednesday, November 20, and the shares will be credited to the demat accounts of allottees on the same day following refunds.
The company plans to utilize the IPO proceeds to fund cloud infrastructure costs, invest in research, design, and development of products and platforms, and purchase computer systems to support business operations. A portion will also be allocated toward inorganic growth through potential acquisitions and for general corporate purposes.
JM Financial Ltd serves as the book running lead manager, while MUFG Intime India Pvt. Ltd. is the registrar of the issue. This IPO represents a significant milestone for India's SaaS ecosystem and offers investors exposure to the rapidly expanding loyalty management market.
