Capillary Technologies India IPO

Capillary Technologies India Limited IPO Strengths

Market Leader in Loyalty Solutions

Capillary Technologies India Limited delivers AI-led SaaS solutions across loyalty, CRM, CDP, analytics, and engagement. With over 1.26 billion consumers hosted, a robust product suite, Fortune 500 clients, and recognition by Forrester, Gartner, and Everest, Capillary leads globally in loyalty innovation, customer retention, and measurable business impact with a 121.25% NRR in Fiscal 2025.

Comprehensive Solutions for Diverse Segments

Capillary Technologies India Limited offers a full-spectrum, AI-powered loyalty management platform adaptable across industries. With modular solutions like Loyalty+, Engage+, Insights+, Rewards+, and CDP, the company supports multiple use cases in retail, BFSI, energy, healthcare, CPG, and travel. Its scalable, co-innovative approach ensures personalised engagement and real-time, data-driven customer retention strategies

Robust Cloud Infrastructure with Scalable Integration Capabilities

Capillary Technologies India Limited operates on a scalable cloud-based architecture that supports real-time processing of massive data volumes, ensuring high-speed and reliable performance at scale. With seamless API-first integration, enterprise-grade security, and vertical-specific adaptability, the platform efficiently serves 390+ brands and over 1.26 billion consumers globally as of March 2025

Enduring Customer Relationships with Scalable Growth and Retention

Capillary Technologies India Limited serves over 390 brands, including 16 Global Fortune 500 companies, across 25 countries. With scalable cloud infrastructure, seamless integrations, and vertical-specific solutions, it maintains long-term, high-value relationships. Its strong NRR—121.25% in FY25—and negligible churn reflect its deep brand integration, up-selling capabilities, and sustained client engagement across industries.

Strong Sales Engine and Partnership Network Driving Brand Expansion

Capillary Technologies India Limited has built a strong sales engine, powered by a global go-to-market team and a growing partner ecosystem, enabling consistent brand additions across regions and verticals. Strategic acquisitions like Persuade Group and AI-driven innovations such as Creatives and Promotions Co-Pilots further enhance customer engagement, retention, and data-led decision-making for continued growth

Proven Playbook for Seamless Integration and Business Turnaround

Capillary Technologies has developed a structured playbook to integrate and scale acquired businesses efficiently. Leveraging this approach, the company successfully turned around acquisitions like Persuade Group, Brierley & Partners, and Rewards+ by migrating operations to India, driving platform synergies, and automating service delivery. These efforts enhanced profitability—improving contribution margins and EBITDA—while expanding market presence in North America and Europe. Strategic acquisitions have not only added marquee clients but also enabled Capillary to unlock operational efficiencies, elevate customer engagement, and drive sustainable growth across its expanding global footprint.

Strong Financial Performance with Consistent Growth and Operating Leverage

Capillary Technologies India Limited achieved consistent growth with revenue rising from ₹2,553.72 million in FY23 to ₹5,982.59 million in FY25. Improved EBITDA and profit before tax highlight operational efficiency. Multi-year subscriptions, customer expansion, cost optimisation, and platform integration strategies contributed to scalable, predictable revenues and strengthened long-term customer value delivery

Experienced Leadership Team Backed by Marquee Investor Base

Capillary Technologies India Limited is led by an accomplished leadership team with deep domain expertise in loyalty and CRM, backed by marquee investors like Peak XV and AVP Funds. Their strategic guidance, global experience, and successful integration of acquired leadership teams have enabled sustained innovation, operational excellence, and global market expansion

More About Capillary Technologies India Limited

Capillary Technologies India Limited is a leading software product company offering AI-powered, cloud-native Software-as-a-Service (SaaS) solutions. The company focuses on building and managing consumer and channel partner loyalty for enterprise customers worldwide, defined as those contributing over ₹8 million annually.

Recognised as a global market leader in loyalty and engagement management (Zinnov Report, Fiscal 2025), Capillary offers one of the most comprehensive loyalty platforms in the industry.

Comprehensive Product Suite

Capillary’s integrated solutions include:

• Loyalty+ – Advanced loyalty management

• Engage+ – Connected engagement platform

• Insights+ – Predictive analytics

• Rewards+ – Rewards management

• CDP – Customer Data Platform

These platforms allow real-time, omni-channel, and hyper-personalised consumer experiences, boosting engagement, repeat sales, and conversions.

Technology and Innovation

Capillary’s products are powered by modern technology stacks with AI and ML capabilities. Key technological features include:

• Seamless integration via APIs with customer ERPs, POS systems, e-commerce, and analytics tools

• AI-driven personalisation and campaign management

• Co-pilot tools for customised promotions and multilingual messaging

Global Presence and Customer Base

With 13 global offices across India, the US, UK, UAE, and Southeast Asia, Capillary serves over 390 brands in 46 countries. Its enterprise clients include:

• Aditya Birla Fashion and Retail

• Abbott Laboratories

• Tata Digital

• Frontier Communications

• A major European bank

Capillary has achieved substantial industry penetration across verticals like retail, healthcare, CPG, BFSI, and energy.

Market Leadership and Growth

Operating in a growing loyalty management market (USD 17B in 2024, projected USD 27.3B by 2029), Capillary stands out for:

• A high Net Revenue Retention (NRR): 121.25% (Fiscal 2025)

• Proven ‘Land and Expand’ strategy

• Both organic and inorganic growth avenues

Loyalty solutions are no longer transactional but strategic assets, and Capillary Technologies continues to evolve with the changing landscape, delivering real business impact.

Industry Outlook

Market Size & Growth Prospects

• The Indian loyalty programs market reached about USD 4.79 billion in 2023, growing to approximately USD 5.37 billion in 2024, and is projected to reach USD 7.9–8.0 billion by 2028—implying a CAGR of ~10–10.5% through 2028

• More bullish analyses forecast a 15.7% CAGR from 2023 to 2033, with the market expanding to USD 14.5 billion by 2033.

• Separately, the loyalty-management software platform segment (cloud/SaaS) generated roughly USD 670.6 million in 2024, expected to rise to USD 1.3 billion by 2030 (CAGR ~11.7%).

Key Growth Drivers

• AI & Personalization: Integration of AI/ML enables real-time predictive offers, hyperpersonalized rewards, and dynamic engagement—projected to enhance customer retention by 15–20%.

• Mobile & Digital Integration: With nearly 900 million smartphone users by 2025, app-based loyalty and digitalwalletlinked programs are becoming dominant.

• Omnichannel & Crossindustry Partnerships: Brands increasingly offer crossbrand redemption, cobranding between retail, fintech, travel, and entertainment for broader reach.

• Gamification & Subscription Models: Gamified challenges and paidtier loyalty (e.g. subscriptions with premium perks) are delivering higher engagement and revenue).

Segment Outlook: SaaS Loyalty Platforms & Analytics (e.g. Capillary’s Products)

• Solution vs. Service: Platforms (solutions such as Loyalty+, Engage+, Insights+, Rewards+, CDP) dominate revenue share, while services (implementation, consulting) are growing fastest.

• AIdriven Capabilities: Predictive analytics, dynamic campaign tools and copilotstyle generative interfaces align with market demand for realtime personalization.

• Integration & Scalability: High demand for seamless ERP/POS/ecommerce integration and cloud scalability supports product adoption across large enterprises.

How Will Capillary Technologies India Limited Benefit

• Capillary Technologies is well-positioned to capitalise on India’s rapidly growing loyalty market, projected to reach USD 8 billion by 2028, supported by rising digital adoption.

• Its AI-powered SaaS platforms directly align with the industry shift towards real-time personalisation and predictive analytics.

• With products like Loyalty+, Engage+, and Insights+, Capillary meets the demand for integrated, omni-channel loyalty solutions.

• The increasing preference for gamified and subscription-based loyalty models supports Capillary’s personalised engagement tools and co-pilot AI capabilities.

• As businesses seek seamless ERP/POS/e-commerce integration, Capillary’s scalable platforms with extensive API compatibility provide a strong competitive advantage.

• Growing smartphone penetration and digital-wallet-linked loyalty usage strengthen Capillary’s mobile-first approach.

• The platform’s modularity and ability to support third-party tools appeal to enterprises aiming to modernise loyalty programs without overhauling their tech stack.

• With enterprises shifting focus from acquisition to retention, Capillary’s data-driven customer insights and CLTV optimisation tools become increasingly vital.

• The company’s early global presence gives it a head start in meeting cross-regional loyalty needs as the market becomes more borderless.

Peer Group Comparison

Name of the Company	Face value (₹)	Revenue (₹)	EPS (₹)	P/E	RoNW (%)	NAV (₹)
Capillary Technologies	2.00	5,982.59	1.93	*	2.85%	65.03
Peer Groups
Salesforce, Inc.	0.08	3,182,153.41	540.79	42.94	10.26%	5,441.60
Adobe Inc.	0.01	1,796,333.97	1,038.29	32.98	36.74%	2,650.28
HubSpot, Inc.	0.09	219,869.21	7.53	Not Avail	-0.29%	3,153.16
Braze, Inc.	0.01	49,830.36	(85.65)	NA	(22.58%)	402.61

Key Strategies for Capillary Technologies India Limited

Targeting Enterprise Customers for Scalable Growth

Capillary Technologies focuses its go-to-market strategy on large enterprises across verticals such as retail, travel, and CPG. By leveraging customer advisory boards, strategic partnerships, and analyst engagement, it aims to expand market share, improve financial metrics, and deliver customized solutions aligned with enterprise needs.

Maximizing Revenue from Existing Customers

Capillary Technologies seeks to improve Net Revenue Retention through pricing model shifts, cross-selling, and product innovations. With transaction-based pricing and usage-based revenue strategies, the company drives deeper engagement and revenue growth, supported by strong farming metrics and customer expansion into new geographies and business lines.

Expanding in North America with Strategic Acquisitions

Capillary Technologies aims to grow in the U.S. and Europe by acquiring firms with strong enterprise presence and modernizing legacy platforms. It leverages post-acquisition synergies, CAC substitution, and balanced capital allocation to drive operational efficiency, margin improvement, and deeper market penetration across evolved loyalty ecosystems.

Scaling Industry-Specific Loyalty Solutions

Capillary Technologies is expanding into sectors like healthcare, BFSI, telecom, energy retail, and travel. It combines organic growth with acquisitions to build customized loyalty solutions. This diversification strengthens its value proposition, expands its addressable market, and reduces dependency on traditional retail verticals.

Investing in AI and Advanced Engagement Platforms

Capillary Technologies prioritizes AI-driven R&D to build proprietary tools like CDPs, personalization engines, and predictive analytics. By integrating ML and automation into its platforms, the company enhances targeting, segmentation, and engagement—driving superior marketing outcomes and reinforcing its leadership in loyalty technology innovation.