Capillary Technologies India Ltd IPO

Last Updated: 24 July 2023 5:09 PM by 5Paisa

IPO synopsis
Capillary Technologies has filed its DRHP with SEBI, worth around Rs.850 crore. The issue consists of a fresh issue worth Rs.200 crore and an offer for sale of equity shares of around Rs.650 crore. The shares are being offloaded by Capillary Technologies International Pte Ltd. They are also planning to go ahead with a pre-IPO placement of shares worth Rs.40 crore and this will be deducted from the amount of fresh issue. 
The book running lead managers to the issue are ICICI Securities, Kotak Mahindra Capital Company and NOMURA Financial Advisory and Securities Pvt Ltd. 

Objectives of the issue
1.    Rs.41.99 crore is to be used to prepay and repay any debt availed by the company
2.    Rs.72 crore will be invested in product development, invested in technology and other growth initiatives
3.    Rs. 30 crores will be used for strategic investments and acquisitions
 

Capillary Technologies is a technology first company, and they offer artificial intelligence-based cloud-native SaaS products and solutions, like automated loyalty management and customer data platforms. These enable large companies to develop loyalty among their customers and channel partners. 
Capillary is the market leader in the Asia-Pacific region in terms of loyalty management, with a 39% market share, in FY20. In September 2021, they acquired Persuade Group and expanded into The United States of America. They have a large amount of intellectual property and focus on developing it and currently hold 38 trademarks and 8 patents.
They serve over 250 brands across various countries like India, UAE, Saudi Arabia, Singapore, Malaysia, Indonesia, Thailand, USA and China, as of 31 October 2021. They also have 8 offices and serve more than 30 countries. Large enterprises have been increasingly adopting Capillary’s platform. They have processed over 1,975.27 million transactions in FY21 and as of 31 October 2021, they had served around 875 million users. 
Their promoter acquired Reasoning Global Eapplications Pvt Ltd and Sellerworx Online Services Pvt Ltd, in FY16 and FY17, and combined them to form Martjack- renamed as Anywhere Commerce+. This business provides companies with an endless aisle- like solution which enables various brands to sell inventory which is located at stores and warehouses on platforms like their respective websites and marketplaces. 
 

Financials