Exclusive: Capillary Technologies To File DRHP For $200 Mn IPO By June

Exclusive: Capillary Technologies To File DRHP For $200 Mn IPO By June

SUMMARY

The startup has restarted preparations for its IPO and is likely to file the draft papers for a $200 Mn (INR 1,700 Cr) public offering by June this year

The startup’s fresh IPO bid would see it looking to raise $12 Mn to $24 Mn through a fresh issue of shares

The startup is likely to seek a valuation of at least $500 Mn and this number may go up to $1 Bn

Capillary Technologies has restarted the preparations for its IPO and is likely to file the draft papers for a $200 Mn (INR 1,700 Cr) public offering by June this year, sources told Inc42.

The IPO size would be almost double from the $114 Mn (about INR 850 Cr) the customer loyalty and engagement platform planned to raise when it filed its DRHP in 2021. However, it deferred its IPO plans then.

The startup’s fresh IPO bid would see it looking to raise $12 Mn to $24 Mn through a fresh issue of shares, while the remaining component would be an offer for sale (OFS). The promoter group and investors who joined the startup’s cap table over the last couple of years will offload their stakes via the OFS, the sources added.

The startup is likely to seek a valuation of at least $500 Mn and this number may go up to $1 Bn. However, the valuation has not been finalised yet.

The startup is unlikely to raise a pre-IPO round. 

Capillary declined to comment on Inc42’s queries on the IPO plans. 

The startup is expected to close the ongoing financial year with a revenue of about INR 650 Cr and an EBITDA margin of about 15%, Inc42 has learnt. This would be an over 5X increase from its revenue of INR 123.1 Cr in FY21.

One of the sources cited above highlighted the sharp improvement in the startup’s financials as the primary reason behind it choosing to almost double the offer size compared to 2021.

“Over the course of the years, Capillary has continued to post strong revenue growth and this has allowed them to increase their IPO size,” the source said, adding that the small issue size indicates it doesn’t need too much fresh capital.

Founded in 2008 by Aneesh Reddy, Capillary Technologies provides omnichannel engagement and commerce solutions. It claims to have a presence in India, Southeast Asia, MENA, and the US. 

Last year, it closed its Series D round at $140 Mn. Of this, around $95 Mn comprised secondary transactions, giving partial exits to existing investors and former employees, and making way for new investors to join the cap table. 

Capillary is backed by marquee names like Avataar Ventures, Filter Capital, Peak XV Partners, among others. 

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