Profitable Capillary Technologies Files INR 850 Cr DRHP

SUMMARY

The offer includes fresh issue of shares worth INR 200 Cr

The offer of Capillary Technologies also includes OFS worth INR 650 Cr from its Singapore-based parent company

Capillary Technologies has posted a profit of INR 17 Cr in FY21, a significant increase from INR 0.2 Cr it posted in FY20

Bengaluru and Singapore-based Capillary Technologies has filed INR 850 Cr draft red herring prospectus (DRHP) with market regulator SEBI. 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 on October 23, 2021 exclusively reported that Capillary Technologies is heading towards a domestic IPO and to list itself by March.

As per the DRHP, Capillary Technologies in consultation with BRLMs (Book Running Lead Manager) may consider a pre-IPO placement. Though the startup hasn’t unveiled its pre-IPO placement amount unlike others, 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, the Indian subsidiary venture which is going for an IPO 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, and 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 to date.

So far, the startup has clocked a total income of INR 123.1 Cr in FY21, a 26% drop than INR 167.5 Cr, it posted in FY20.

Though the startup income dropped, it has successfully managed to reduce its expenses by 36.5% in FY21, from INR 167.3 Cr to INR 106.2 Cr in FY21. Thus eventually helping the startup to taste a profit of INR 17 Cr in FY21, a significant increase from INR 0.2 Cr it posted in FY20.

This makes Capillary Technologies among the few Indian new-age companies including Nykaa, ixigo, CarTrade, Nazaara, EaseMyTrip, and MapMyIndia who are profitable and have or are going for a public listing.