Highlights
| Issue Size – 15,207,998 shares | Issue Open/Close – 14 Nov / 18 Nov, 2025 |
| Price Band (Rs.) 549 – 577 | Issue Size (Rs.) ~ 8,775 mn |
| Face Value (Rs) 2 | Lot Size (shares) 25 |
Capillary Technologies Limited (CTL) incorporated in 2012, is a leading Indian software-as-a-service (SaaS) company that specializes in designing end-to-end loyalty and engagement systems that enable brands to build strong, data-driven relationships and drive long-term growth.
Their product suite includes Loyalty+ for advanced loyalty management, Engage+ for connected engagement, Insights+ for predictive analytics, Rewards+ for rewards management, and a Customer Data Platform (CDP) for unified customer insights. These solutions empower brands to deliver personalised, real-time, omni-channel experiences and improve customer retention and sales performance.
Headquartered in India with a significant global footprint with offices in locations across the United States, United Kingdom, United Arab Emirates and other Asian countries, CTL support over 410 brands in 47 countries.
Out of the total proceeds from the offer, ~Rs. 1,200 mn would go towards funding cloud infrastructure costs, ~Rs. 1,515 mn would go towards research, designing, and development of products and platform, ~Rs. 103 mn would go towards purchase of computer systems and ~Rs. 631 mn would go towards acquisitions and general corporate purposes. While ~Rs. 5,325 mn would go towards existing selling shareholders of the company.
Key Highlights
- The global loyalty market is valued at USD 16.6 bn in FY24 and is expected to grow significantly, reaching USD 26.8 bn by 2029, projecting a growth rate of 10 pct from 2024 to 2029. Changing end-user demographics, growing expenditure on loyalty programs, rapid growth in the applications of AI and analytics, and appreciation for online reward management solutions are adding to the loyalty market growth.
- CTL have established themselves as a leader in the global loyalty solutions industry in terms of email marketing tools, marketing automation platforms, loyalty solutions, rewards programs, account-based marketing tool (ABM), customer support tools, CDP, CRM and analytics / business intelligence tools.
- CTL’s products/services allow its customers to run end-to-end loyalty programs throughout the customer value chain, and provide an integrated approach that combines customer data, advanced analytics, and AI-driven engagement.
- CTLs growth path focuses on three key areas, (i) maximizing organic growth through (a) improving Net Revenue Retention (NRR) from existing customers through their ‘land and expand’ approach; and (b) new customer acquisition, and (ii) inorganic growth to integrate complementary technologies and access new customer segments. Their multipronged approach to growth ensures that they retain and expand existing customer base, introduce new features, and achieve operational synergies.
- As part of their ongoing customer acquisition strategy, they have maintained their focus on acquiring new Enterprise Customers, particularly in the United States, Europe, and Asia. Their sales model involves maximizing sales and profitability by leveraging existing SaaS platform, AI and analytics capabilities, and consulting expertise.
- The company’s core strategies include (i) Focusing its go-to-market strategy on larger enterprises (ii) Focusing on improving sales from existing clients (iii) Expanding presence in the United States and pursue further acquisitions in North America and other regions (iv) Driving expansion through addition of new industry-specific solutions (v) Continue investing in artificial intelligence-driven enhancements and advanced customer engagement solutions.
- During FY25 the sales of the company jumped by 13.9 pct YoY to Rs. 5,983 mn. While EBITDA of the company grew from -118 mn to Rs. 650 mn and EBITDA margin expanded to 10.86 pct YoY in FY25. During FY25, the company reported profit of Rs. 142 mn, from loss of Rs. 684 mn in FY24.
Key Risk
- CTL’s top 10 customers contributed ~59 pct of sales in FY25, any loss or reduction of business or termination of contracts from/by these customers could reduce CTL’s revenues
- CTL conducts business across merging and developed markets and serve customers across countries primarily in Asia and in North America and is exposed to risks related to foreign currency, regulations and local competition.
Financial Performance
| Particulars | FY23 | FY24 | FY25 | H1FY26 |
| Sales (Rs. mn) | 2554 | 5251 | 5983 | 3592 |
| EBITDA (Rs. mn) | -692 | -118 | 650 | 365 |
| EBITDA Margin % | -27.1% | -2.3% | 10.9% | 10.2% |
| Profit (Rs. mn) | -886 | -684 | 142 | 10 |
| Profit Margin % | -34.7% | -13.0% | 2.4% | 0.3% |
| ARR | 2536 | 5460 | 6083 | 7201 |
| NRR % | 139.0% | 112.7% | 121.3% | 115.4% |
Valuation
Capillary Technologies, founded in 2012, is a technology-first company that delivers AI based cloud-native SaaS programs and solutions – leading the automated Loyalty Management and customer data platform. Today the brand serves over 393 brands across 43 countries with a wide range of business improvement, customer engagement and customised growth accelerating SaaS based products. At the upper end of the price of Rs. 577, the issue quotes PE of 2215x on FY26 annualized earnings. The issue looks fully priced.
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