Capillary Technologies has received board approval for a long-awaited initial public offering (IPO) of Rs. 2,250 crore (~$263 million), which could be a landmark moment for India's enterprise SaaS sector.

• Capillary Technologies to file for Rs. 2,250 crore IPO in June 2025, marking a major milestone for India’s SaaS sector.
• IPO includes Rs. 500 crore fresh issue and Rs. 1,750 crore OFS, enabling partial exit for investors like Warburg Pincus and Peak XV Partners.
• Backed by $240 million in funding, Capillary’s enterprise loyalty platform serves clients like Tata Group, Domino’s, and Shell across 30+ countries.

The Bengaluru-based provider of AI-enabled customer engagement and loyalty solutions is expected to file a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) sometime in June 2025, targeting a listing by the end of H1 FY25.

The public issue is made up of a fresh issue of equity of Rs. 500 crore and an offer for sale (OFS) of Rs 1,750 crore, which indicates partial exit for long-term backers including Warburg Pincus, Peak XV Partners, American Express Ventures and others.

The IPO comes nearly three years after Capillary revoked an IPO in 2021 due to adverse market conditions.

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Founded in 2008 by IIT Kharagpur alumni Aneesh Reddy, Ajay Modani and Krishna Mehra, Capillary Technologies is now in over 30 countries and powers over 120 loyalty programs. Its clients include Tata Group, Domino's, Shell, Puma, Marks & Spencer, Indigo and Al-Futtaim, highlighting close integration into enterprise ecosystems across Asia, the Middle East and increasingly, North America.

In 2023, Capillary obtained $140 million (Rs. 1,201 crore) in their Series D round, which included $95 million of secondary share sales. The round included new investors Pantheon, 57Stars, and Unigestion as well. Thus far, Capillary has managed to secure over $240 million altogether in funding.

Prior to its IPO, Capillary also increased its employee stock ownership plan (ESOP) pool by 123 percent, from 32.6 lakh to 72.91 lakh options. The options pool accounts for 9.04 percent of the company’s share capital. The options pool is estimated to hold a value somewhere close to Rs. 212 crore of the total ESOP pool value of Rs. 384 crore. Of the total funding to date, $20 million has been committed to employee compensation related to ESOPs.