IPO-Bound SaaS Startup Capillary’s FY21 Profit Surged 82X To Nearly INR 17 Cr

IPO-bound Capillary Technologies witnessed a multifold rise in its net profit for FY21 to INR 16.94 Cr. The Bengaluru and Singapore-based SaaS giant’s net profit increased 82 times from INR 20.6 Lakh in FY20, the company said in its DRHP. 

Total income of the company, however, declined 26.5% to INR 123.15 Cr in FY21 from INR 167.59 Cr in FY20. Its revenue from operations fell 30.8% during the period under review at INR 114.9 Cr from INR 166.12 Cr in FY20.

The SaaS startup also recorded a decline in its expenses in FY21. It reported a total expenditure of INR 106.21 Cr in FY21, 36.5% lower than INR 167.39 Cr spent a year ago.

A major chunk of its expenses during the last financial year consisted of employee benefits expenses, which stood at INR 71.87 Cr.

Its net profit for the first quarter (April-June) of FY22 stood at INR 2.52 Cr, while its total income was INR 33.7 Cr during the quarter.

The operational revenue in Q1FY22 stood at INR 33.16 Cr, the SaaS startup said in the DRHP filing.

The draft prospectus shows that its outstanding debt stands at nearly INR 83 Cr. The company intends to utilise around INR 42 Cr from the net proceeds to repay debt.

Capillary IPO | The INR 850 Cr Offer

Earlier this week, Capillary had filed its DRHP to raise INR 850 Cr through IPO. 

The startup’s offer includes fresh issue of shares worth INR 200 Cr and an offer for sale of worth INR 650 Cr.

CTIPL or Capillary Technologies International PTE Ltd, the Singapore parent company of Capillary Technologies will be the only selling shareholder during the IPO.

The development comes almost two months after Inc42 exclusively reported about Capillary Technologies’ plans of domestic IPO.

As per the DRHP, Capillary Technologies in consultation with BRLMs (Book Running Lead Manager) may consider a pre-IPO placement. 

The startup hasn’t unveiled its pre-IPO placement amount yet. However, it said if the pre-IPO placement is completed, the fresh issue will be reduced to the extent of pre-IPO placement. 

Though Capillary Technologies is backed by Warburg Pincus, Sequoia Capital, Avataar Capital, and Filter Capital among others, Capillary is a fully owned subsidiary of CTIPL.

Founded in August 2008 by IIT Kharagpur alumni Aneesh Reddy and Krishna Mehra, Capillary Technologies is an omnichannel engagement and commerce solution startup. 

It claims to have a stronghold in India, Southeast Asia, MENA, China, among other countries. The startup offers 100+ loyalty programmes, and has over 120K stores and more than 500 Mn consumers. Over the years, it raised more than $100 Mn in funding.

Indian Startups In The Public Market Arena 

With the filing of its DRHP, the SaaS startup has joined the list of new-age companies waiting to hit the public markets in 2022.

At least 16 startups are expected to go public next year. The giants in the India startup ecosystem which are likely to open their public offers next year include hospitality unicorn OYO, logistics major Delhivery, ecommerce giant Flipkart, mobility unicorn Ola among others.

The year 2021 was a pioneering year in terms of startups going public, starting with the bumper listing of Zomato in July. It was followed by the likes of Paytm, Nykaa, Policybazaar among others.

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