Capillary Technologies, a Bengaluru-based leader in customer loyalty and engagement software, is launching its Initial Public Offering (IPO) on November 14, 2025. The company, which uses Artificial Intelligence to power solutions for global brands, aims to raise approximately ₹878 crore.
For investors asking, "Should I invest in the Capillary Technologies IPO?", this comprehensive guide provides a detailed analysis. It covers the company’s business model, financials, key strengths, potential risks, and what the IPO means for your investment portfolio.
Table of Contents
- Capillary Technologies IPO: Key Details at a Glance
- What Does Capillary Technologies Do?
- Why is Capillary Technologies Launching an IPO?
- Is Capillary Technologies Profitable? A Financial Snapshot
- Key Strengths and Potential Risks for Investors
- The Final Verdict: Should You Subscribe to the IPO?
- FAQs
The public issue size has been adjusted to reflect current market conditions, indicating a practical approach to valuation.
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Get all the latest updates on the Capillary Technologies IPO, including issue structure, price band details, and subscription trends.
Capillary Technologies operates on a B2B Software-as-a-Service (SaaS) model. It provides a cloud-based platform that helps large businesses build and manage customer loyalty. Its core products use AI to help brands understand consumer behaviour, drive repeat sales, and reduce customer churn.
Core Offerings:
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Loyalty+: A platform for creating and managing customer loyalty programmes.
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Engage+, Insights+, Rewards+: A suite of tools for personalised marketing and data analysis.
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Customer Data Platform (CDP): Unifies customer data from multiple sources to create a complete consumer profile.
The company generates recurring revenue through subscriptions from clients across more than 47 countries, including major global brands.
The IPO is designed to raise capital for growth and allow early investors to monetise a portion of their holdings.
How will the proceeds be used?
The ₹345 crore from the fresh issue is allocated for:
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₹143 crore for expanding cloud infrastructure.
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₹71.6 crore for investment in Research & Development (R&D) to enhance AI capabilities.
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₹10.3 crore for purchasing new computer systems and IT hardware.
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The remaining funds will be used for potential acquisitions and general corporate needs.
The Offer for Sale (OFS) component allows the promoter entity, Capillary Technologies International Pte Ltd., to sell a part of its stake, which is a common practice for venture-capital-backed firms going public.
Capillary Technologies has undergone a significant financial turnaround. After posting losses in previous years, the company has focused on operational efficiency and achieved profitability.
For the financial year 2025, the company reported a revenue of ₹598 crore and turned profitable. This successful turnaround is a key reason for its decision to list on the Indian stock exchanges.
Strengths (Pros):
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Market Leadership: A recognised global leader in the loyalty technology space.
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AI-Driven Platform: Its use of AI and machine learning creates a strong competitive advantage.
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Scalable SaaS Model: The subscription-based model ensures recurring revenue and high scalability.
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Blue-Chip Clients: Long-term contracts with a diverse portfolio of global brands.
Risks (Cons):
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Aggressive Valuation: Some analysts consider the IPO pricing to be high compared to global peers with better margins.
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Client Concentration: Approximately 59% of revenue comes from its top 10 clients, posing a concentration risk.
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Intense Competition: The marketing technology sector is crowded with both large incumbents and agile start-ups.
There’s a helpful video by IPO Review by Groww that breaks down Capillary Technologies’ business model, strengths, risks, and IPO structure — worth watching for a clearer understanding of how the company operates.
The Capillary Technologies IPO presents an opportunity to invest in a profitable, home-grown SaaS company with a global presence. Its focus on AI in the growing loyalty-tech market is a major draw.
However, the aggressive valuation is a significant concern. The IPO was subscribed only 9% on its first day, suggesting investors are approaching it with caution.
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For Long-Term Investors: The company’s strong fundamentals, recurring revenue model, and large addressable market make it an interesting prospect. If you believe in the long-term potential of AI-driven marketing, this IPO is worth considering despite the premium valuation.
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For Short-Term/Listing Gains: The cautious market response and high pricing make significant listing day gains uncertain.
Ultimately, the decision to invest depends on your risk appetite for a high-growth but richly valued tech stock. Post-listing, its performance can be tracked on platforms like Finology Ticker to monitor its ability to sustain growth and justify its valuation.
Want to evaluate how Capillary’s pricing compares with recent high-growth listings? Use the IPO dashboard for sector-specific and market-wide comparisons.
1. What does Capillary Technologies do?
Capillary Technologies is a SaaS company that provides AI-powered software to help businesses manage customer loyalty and engagement through personalised marketing, data analytics, and rewards programmes.
2. What are the key details of the Capillary Technologies IPO?
The IPO runs from November 14 to November 18, 2025, with a price band of ₹549–₹577 per share. The company aims to raise ₹878 crore through a mix of a fresh issue and an Offer for Sale.
3. Is Capillary Technologies a profitable company?
Yes, after a period of losses, Capillary Technologies became profitable in FY25, reporting revenue of ₹598 crore. This financial turnaround is a key positive for potential investors.
4. What are the main risks of investing in the Capillary Technologies IPO?
The primary risks include the aggressive valuation, high client concentration (a large portion of revenue comes from a few clients), and intense competition in the marketing technology industry.
5. Should I apply for the Capillary Technologies IPO?
This depends on your investment horizon. Long-term investors may find its AI-driven business model attractive, while short-term investors should be cautious due to the high valuation and muted initial subscription demand.
6. Who are the main competitors of Capillary Technologies?
The company competes with a range of global software providers in the customer relationship management (CRM) and marketing automation space, including large players and niche start-ups.