EXCLUSIVE: Capillary to file DRHP for Rs 1,000 cr IPO this week

Customer loyalty and customer engagement solutions provider Capillary Technologies is likely to file its draft red herring prospectus (DRHP) for an initial public offering (IPO) this week, according to sources close to the development.

The Bengaluru-based company will file draft papers with capital markets regulator Securities and Exchange Board of India (SEBI) on Thursday or Friday. In case of any delay due to the Christmas week, the filing will be made on Monday, sources said.

Capillary is looking to raise about Rs 900-1,000 crore via the IPO including a primary component of Rs 250 crore while the balance involves secondary share sales as some of its early investors are expected to clock partial exits. Sequoia Capital will make a partial exit on its nearly decade-old investment while Warburg Pincus, which invested in 2016, is unlikely to sell any of its shares. Qualcomm Ventures, Norwest Venture Partners, and American Express Ventures are among its early investors.

The company is aiming for a listing in April-May depending on SEBI approval of the DRHP.

Meanwhile, Capillary has appointed five new independent directors to its board ahead of the IPO. The new directors are - Neelam Dhawan, former MD of HP and Microsoft India; Farid Kazani, ex MD and Group CFO of Majesco Limited and Group CFO and Finance Director, Mastek; Sameer Garde, former President of Cisco and Dell; Venkat Tadanki, Managing Partner, Anvaya Ventures; and Yamini Bhat, co-founder, Vymo.

Founded in 2008 by Aneesh Reddy and Krishna Mehra, Capillary provides cloud-based, omnichannel loyalty Customer relationship management (CRM) and e-commerce solutions to retail businesses to help them unlock customer retention potentials. The company is currently present across the US, Middle East, SEA, India and China. Mehra moved on from the company in 2015.

In September, it acquired Minneapolis-based customer experience company Persuade in its first US acquisition and fourth globally.

Amid the consumer-tech IPO frenzy that began with Zomato’s blockbuster stock market debut in July, a slew of Software as a Service (SaaS) firms are preparing to hit the public market now. According to a recent report by The Economic Times, cloud data protection firm Druva is readying to list in the US. Travel and hospitality solution provider RateGain made its stock market debut last week. RateGain listed at a discount of 15 per cent to the issue price today. The firm made its debut at Rs 360 per share (down 15.29 per cent) on the NSE against the IPO issue price of Rs 425. Market cap of the firm stood at Rs 3,843 crore. Total 20.51 lakh shares of the firm changed hands amounting to a turnover of Rs 73.83 crore on the NSE. 

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