Capillary Technologies India Gets SEBI Nod for IPO with Fresh Issue Of ₹430 Crore

SaaS provider Capillary Technologies India has received regulatory approval to launch its initial public offering (IPO). The Securities and Exchange Board of India (SEBI) granted its observations on September 22, equivalent to clearance for going public. The company filed its draft red herring prospectus in June this year. The proposed issue combines a fresh issue with an offer for sale by existing shareholders.

IPO Structure

The public offering includes a fresh issue of shares worth ₹430 crore and an OFS of 1.83 crore equity shares. Selling shareholders in the OFS are Capillary Technologies International Pte Ltd, Ronal Holdings LLC, Trudy Holdings, and Filter Capital India Fund I. The equity shares will be listed on both the NSE and the BSE. JM Financial, IIFL Capital Services, and Nomura Financial Advisory are the appointed book-running lead managers.

Proceeds from the fresh issue will be channelled into multiple business priorities. About ₹120 crore is earmarked for cloud infrastructure costs, supporting the company’s AI-driven SaaS platform. Another ₹151.54 crore will be invested in research, design, and development of its products. Around ₹10.32 crore will go towards computer system purchases, while the balance will fund acquisitions and corporate purposes.

Company Background

Capillary Technologies India, founded in 2008, offers cloud-native SaaS solutions enhanced by artificial intelligence. Its products cater primarily to enterprise clients seeking digital transformation and customer engagement platforms. Headquartered in India, the company has built a global presence over the years. It operates offices in the US, the UK, the UAE, and multiple Asian markets.

The firm works with over 390 brands across more than 45 countries, as of March 31, 2025. Its client portfolio spans retail, consumer goods, and other industries. Capillary’s focus on AI-driven innovation allows businesses to optimise customer loyalty and digital sales. The IPO is expected to strengthen its ability to compete in the global SaaS landscape.

Financial Performance

Capillary Technologies reported revenue from operations of ₹598 crore in FY25, compared with ₹525 crore in FY24. This represented a growth rate of 14% year-on-year. The company turned profitable in FY25, recording a profit of ₹13.28 crore. This was a sharp turnaround from a net loss of ₹59.38 crore in FY24, underscoring operational improvements.

The company’s stronger financial position is expected to support investor confidence during the IPO. Its improved margins and positive cash flow signal resilience in a competitive SaaS market. With global demand for enterprise technology solutions on the rise, Capillary is positioned to expand further. The listing will provide it with visibility and additional capital to pursue growth opportunities.

Conclusion

Capillary Technologies’ IPO marks a significant step for an Indian SaaS company with a global footprint. The ₹430 crore fresh issue and OFS structure provide funding flexibility for expansion. Proceeds will strengthen infrastructure, research, and strategic growth. With SEBI approval in place, the company is set to move towards its listing on NSE and BSE in the coming months.