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Capillary Technologies’ DRHP highlights rising competition, AI impact on business
Economic Times
·
21d ago
Medial
Capillary Technologies’ draft red herring prospectus highlights the competitive landscape in customer engagement technology, emphasizing increased competition and AI's impact on business. The company faced customer attrition and growing rivalry from firms offering similar services. With AI's rapid evolution, there are potential challenges from customers developing in-house capabilities. Despite a slight reduction in research investment, the company remains focused on AI advancement and plans acquisitions to maintain its market position, aiming to raise Rs 430 crore through an IPO.
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Capillary Technologies files DRHP; to raise Rs 430 Cr via fresh issue
Entrackr
·
22d ago
Medial
Capillary Technologies files DRHP; to raise Rs 430 Cr via fresh issue Loyalty management firm Capillary Technologies has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) on Thursday. The IPO includes a fresh issue of equity shares worth Rs 430 crore (approximately $50 million) and an offer for sale (OFS) of 1.83 crore equity shares, according to the DRHP. Earlier this month, the Bengaluru-based firm received the board nod for its planned Rs 2,250 crore or $265 million Initial Public Offering. Capillary Technologies International Pte. Ltd will offload approximately 77.6%, or 1.43 crore shares, of the total OFS. Other participants in the OFS include Ronal Holdings, Trudy Holdings, Filter Capital, and individual shareholders such as Sripathi Venkata Ramana Reddy, Harminder Sahni, Adarsh Reddy, Sudhakar Reddy, Sripathi Damodar Reddy, and Manjunath Nanjaiah. As per the DRHP, Capillary Technologies International Pte Ltd, the promoter, holds a 65.47% stake in the company. Ronal Holdings and AVP Fund (Avataar Ventures) follow with holdings of 7.53% and 5.51%. Trudy Holdings and Filter Capital India own 4.49% and 3.66%, respectively. Capillary Technologies plans to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The IPO will be managed by JM Financial, IIFL Capital, and Nomura Financial Advisory, who are acting as the book-running lead managers. According to the DRHP, the net proceeds from the fresh issue will be utilized for cloud infrastructure costs, research, design, development, and other general corporate purposes. In the previous fiscal year ended March 2025, the company recorded a 14% year-on-year growth in its revenue to Rs 598 crore, up from Rs 525 crore in FY24. It also posted a net profit of Rs 14.1 crore in FY25, compared to a loss of Rs 68.3 crore in FY24.
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SaaS provider Capillary Technologies revives IPO plan
Economic Times
·
8m ago
Medial
Capillary Technologies, a Bengaluru-based customer engagement and loyalty software services provider, is reportedly reviving plans for an initial public offering (IPO). The company has sought proposals from investment banks and aims to file draft papers in 2025. Capillary Technologies had deferred its previous IPO attempt in 2021. The IPO is expected to be larger this time, with the company having grown significantly since then. Capillary Technologies manages loyalty programs for big companies such as Tata Group and Aditya Birla Group, and has made strategic acquisitions to expand its geographic reach and business segments.
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Capillary Technologies turns profitable in FY25
Entrackr
·
22d ago
Medial
Capillary Technologies turns profitable in FY25 Customer loyalty and engagement solutions provider Capillary Technologies has filed its Draft Red Herring Prospectus (DRHP) with SEBI as it gears up for a public listing. The document offers a detailed view into the company’s financials, revealing a sharp turnaround in FY25. Capillary Technologies’ operating revenue rose 14% to Rs 598 crore in FY25, compared to Rs 525 crore in FY24, as per data disclosed in the DRHP. Capillary Technologies follows a B2B SaaS model, earning revenue through subscriptions and services for its loyalty and customer engagement platform used by global brands to enhance retention and personalization. Most of the company’s revenue is through subscription-based software services, which contributed over 80% of the total, growing nearly 20% year-on-year to reach Rs 481 crore in FY25, from Rs 402 crore in FY24. The remaining Rs 117 crore came from other streams such as services and integration-linked fees. From a regional perspective, North America emerged as Capillary’s largest revenue contributor, accounting for 56.6% of the total revenue in FY25, up from 48% in the previous fiscal. EMEA (Europe, Middle East, and Africa) made up 19%, while Asia-Pacific’s share declined to 24% from 33% in FY24. While a detailed expense breakdown isn’t disclosed, the company’s return to profitability suggests improvements in cost structure and stronger monetization of its offerings. The company posted a net profit of Rs 14 crore in FY25, a significant improvement from the Rs 68 crore loss in FY24. Meanwhile, its EBITDA stood at Rs 78.5 crore in FY25, with a margin of 13%. As Capillary moves closer to its IPO, the shift to profitability will likely be a key narrative for investors looking at the company’s long-term potential and scalability.
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Warburg, Peak XV backed-Capillary Technologies extends Series D round to $140 mn
VCCircle
·
1y ago
Medial
Capillary Technologies, a SaaS startup, has expanded its Series D funding round to $140 million with an additional $95 million secured from existing investors, led by Avataar Ventures. The company has earmarked $20 million for employee stock ownership plan payouts. Capillary Technologies provides loyalty management and customer engagement solutions to brands such as Tata, PUMA, and Domino's. The funds will be used for AI initiatives and geographic expansion. The startup has grown its presence in the United States and operates across India, Southeast Asia, and the Middle East. Capillary Technologies had previously filed documents for an IPO but hasn't proceeded with the plan.
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Microsoft results disappoint investors wanting more from AI
Economic Times
·
5m ago
Medial
Microsoft's Azure cloud business growth disappointed investors despite beating revenue estimates due to high AI expenses and competition from low-cost Chinese AI technologies. The stock dropped by 2% as Microsoft struggles to demonstrate returns on substantial AI investments. Azure's revenue growth fell short of expectations, exacerbated by a rising Chinese AI model, DeepSeek. Microsoft's shares gained 8% over the year but lagged behind rivals like Alphabet and Amazon. Despite this, Microsoft's AI capabilities continue to lure investors.
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India’s human capital its biggest satya: Microsoft’s CEO Satya Nadella
Economic Times
·
6m ago
Medial
Microsoft Chairman Satya Nadella emphasizes the importance of tapping into India's human capital for competitiveness, highlighting India's potential in the AI revolution. Nadella discusses the impact of AI as the next platform shift and underscores the need for innovation amidst rising global competition, particularly from China. He mentions Microsoft's investments and partnerships in AI, addressing concerns around technology's impact on employment. Nadella envisions AI contributing significantly to India's economic growth and its journey toward a $5 trillion economy.
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Capillary Nets $95 Mn In Secondary Fundraise
Inc42
·
1y ago
Medial
India-based customer loyalty and engagement solutions provider Capillary Technologies has raised $95m in secondary transactions to extend its Series D funding round. The total funding now stands at $140m. Capillary will use the funds to support its artificial intelligence initiatives, drive global expansion and strengthen its position in the customer loyalty software-as-a-service (SaaS) solutions sector. The company also plans to allocate $20m for employee stock ownership plan payouts. Capillary's suite of products, including Loyalty+ and Engage+, are AI-powered and serve over 400 brands worldwide.
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Capillary Tech buys assets of customer loyalty services firm Kognitiv
Economic Times
·
1m ago
Medial
Capillary Technologies, a Bengaluru-based customer engagement software firm, acquired assets from Canada's Kognitiv, focusing on customer loyalty services. This acquisition supports Capillary's expansion into North America, adding over 30 enterprise clients globally. Capillary, backed by Warburg Pincus, plans to go public and is seeing significant revenue growth, reporting a profit in 2025. Founded in 2008, the company supports major brands like Tata and Shell in their loyalty programs, enhancing its market influence.
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Capillary Technologies extends latest funding round, raises $95 million in secondary
Economic Times
·
1y ago
Medial
Capillary Technologies has raised an additional $95 million in secondary transactions as part of its Series D funding round, extending the total round to $140 million. The funding will provide exits to existing investors and employees. The company is also planning to list on the Indian bourses in the next 18 months. The latest tranche includes an additional $6 million in equity funding from angel investors. Capillary Technologies will use the capital to support its artificial intelligence initiatives, partnerships, and expand further into the US and European markets. The company is said to have an annual revenue run rate of around $75 million.
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Turkish competition authority launches probe into Google's PMAX
Economic Times
·
21d ago
Medial
Turkey's antitrust authority is investigating Google's Performance Max (PMAX) to assess potential competition law violations. The probe focuses on whether Google has unfairly treated advertisers and restricted competition through data consolidation with PMAX. This AI-driven advertising tool optimizes ad placement across Google platforms like email, search, and YouTube. This investigation highlights ongoing scrutiny over tech giants' control of digital advertising markets and their use of data-intensive technologies.
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