Team StartupCity

• Capillary raises Rs 394 crore from 21 anchor investors
• Majority of anchor investment comes from domestic mutual funds
• Company posts strong FY25 growth and turns profitable

Capillary Technologies has raised Rs 393.7 crore from 21 anchor investors at the upper price band of Rs 577 per share, a day before its IPO opens for subscription on November 14. The SaaS startup allotted 68,28,001 equity shares as part of the anchor round, as per its latest stock exchange filing.

Domestic mutual funds dominated the anchor book, taking up 46.1 lakh shares or 67.52% of the allocation, through nine fund houses spread across 13 schemes. Their total investment stood at Rs 266 crore. Leading participants included SBI Mutual Fund, ICICI Prudential, Kotak, Axis, Aditya Birla, and Edelweiss.

Global investors also showed strong interest. Amundi Funds, Matthews India Fund, HSBC Global Investment Funds - Asia Ex Japan Smaller Companies, PineBridge India Equity Fund, Hornbill Orchid, and Innoven Capital were among the international names backing the company.

The IPO is being led by JM Financial, IIFL Capital, and Nomura, with MUFG Intime serving as registrar. As outlined in its red herring prospectus, Capillary has cut the size of its fresh issue to Rs 345 crore, down from the initially planned Rs 430 crore. The offer-for-sale portion has also been reduced to 92.2 lakh shares from the earlier proposed 1.83 crore shares.

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Founded in 2008 by Aneesh Reddy, Krishna Mehra, and Ajay Modani, Capillary provides cloud-native loyalty, CRM, and customer engagement solutions to over 390 brands across 46 countries. Its clients include Tata Digital, Aditya Birla Fashion, and Abbott Labs.

The company reported solid financial performance in FY25, with revenue rising 14% year-on-year to Rs 598 crore. Capillary also returned to profitability, posting a net profit of Rs 14.1 crore after recording a loss of Rs 68 crore in FY24.