Capillary Tech set to file IPO documents by October; Warburg, others to trim stake via listing planned this fiscal

Capillary Technologies, a company specialising in loyalty management and customer engagement software, is likely to file a draft prospectus by October and go public this fiscal, two people aware of the plan told Mint. This would be its second attempt at listing.
The company's board approved an initial public offering of ₹2,250 crore, of which ₹500 crore is a fresh issue of shares and ₹1,750 crore is an offer for sale by existing investors, according to a filing with the ministry of corporate affairs earlier this month.
Investors such as Warburg Pincus and Avataar Ventures will sell a part of their stakes in the IPO to reach minimum public shareholding norms, the people added. Warburg Pincus first invested in Capillary in 2018 in a $20 million round, alongside Sequoia Capital. Avataar joined the cap table in 2023 in an equity and debt round that totalled $140 million.
Also Read | Top secret: IPO-bound startups may opt for confidential filings to keep options open, sensitive information under wraps
"The company is on track to list this year. It is likely to be valued at $1.2-1.3 billion. All investors are bullish on the growth of the company but will sell to meet the minimum public holding requirements," one person told Mint, requesting anonymity.
This is Capillary Technologies' second attempt at a public listing. It joins startups including Navi and Droom that had initially pursued IPOs during the 2021 boom but are now making a renewed push to go public this year.
The company first filed a draft red herring prospectus in December 2021 for a fresh issue of equity shares worth ₹200 crore and an offer for sale of ₹650 crore, totaling ₹850 crore. However, the company did not proceed with the listing at the time.
Queries sent to Capillary Technologies, Warburg Pincus, and Avataar Ventures did not elicit a response at the time of publishing the story.
Brand loyalty
Founded in 2012 by Aneesh Reddy, Ajay Modani, and Krishna Mehra, Bengaluru-based Capillary Technologies helps businesses across various industries to improve customer engagement, drive sales, and build brand loyalty through their AI-powered platform.
Also Read | Market meltdown may cut startup IPOs and valuations down to size
It has a presence across the US, India, the Middle East, and Asia – in particular, Southeast Asia. The company reported revenue of about ₹600 crore in FY24, up 80%, while its net loss narrowed to ₹59 crore.
In May, the company acquired assets from bankrupt Canadian firm Kognitiv in a bid to expand its North American presence and gain access to over 30 enterprise clients.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

First Post

30 minutes ago

• First Post

Canada's Carney seeks to mend ties, but Khalistan issue requires India to be cautious

Unlike other Canadian leaders such as Justin Trudeau and Pierre Poilievre, Prime Minister Mark Carney understands the importance of India as a country whose global influence is growing by the day, but Delhi must not lower its guard on the Khalistan issue read more In this season of geopolitical flare-ups, it seems at least one relationship is back on track. Years after the Justin Trudeau administration played sinister games with India trying to appease its domestic Khalistani vote bank, the India-Canada equation under newly elected Prime Minister Mark Carney is now becoming friendlier with each passing day. A good example of this was on display during Prime Minister Narendra Modi's visit to Canada last week for the G7 summit. Earlier India had downgraded its diplomatic ties with the country and had even recalled its diplomats after a controversy had broken out during the previous administration when then Prime Minister Justin Trudeau had accused Indian agents of the assassination of Khalistani terrorist Hardeep Singh Nijjar on Canadian soil. But now on the sidelines of the G7 summit, both PM Modi and Carney have not only agreed to the reinstatement of High Commissioners between India and Canada, but they have also decided to resume the long-stalled trade talks between the two countries. STORY CONTINUES BELOW THIS AD While speaking to media on the occasion of the G7 summit, PM Carney was all praises for PM Modi's leadership, calling his meeting with him a 'great honour' in addition to asserting how Modi has become a permanent invitee to the summit since the year 2018 and would also likely make an appearance at the next summit scheduled to be held in France. While the conciliatory notes extended by Carney towards India are a significant break from the past, what is also important to note is that the whole Canadian dispensation seems to be undergoing a shift of position towards India even on the much-controversial Khalistan issue as well. Around the same time that Carney and Modi held a meeting on the sidelines of the summit, an interesting report was released by the country's top intelligence agency, the Canadian Security Intelligence Service (CSIS). While the report has again made an unsubstantiated assertion over alleged Indian foreign interference in Canada, in a big break from the Trudeau era, the report has also conclusively noted that Khalistanis are indeed using Canadian soil to 'promote, fundraise and plan' violent activities primarily targeting India since the mid-1980s. This has to be the first time that a Canadian agency has made such an open and honest admission of Canada serving as a base for the Khalistani terrorists for almost four decades now. Looking at the changing tunes in Canada, one really wonders if the future of India-Canada ties will be bright now onwards, with the biggest irritant of extending state support to Khalistanis by Canada a thing of the past? Well, the truth is that it will be a constant cost-benefit analysis that will determine Canada's attitude towards India in the long run, no matter how friendly and favourable the Carney government seems at the moment. One may say that unlike the Trudeau government, which was at the mercy of noted Khalistani Jagdeep Singh's New Democratic Party (NDP), this time the Liberal Party government faces no such compulsions. NDP is now a politically spent force and Jagmeet a practical nobody in the Canadian political scene, allowing Carney to dictate terms more freely. This explains why, for the first time, a Canadian intelligence report has so openly indicted the Khalistanis for targeting India using Canada as a base. The last time an attempt towards this was made, the Trudeau administration had made sure to redact those portions. STORY CONTINUES BELOW THIS AD In addition to the reduced political dependence on the K-factor, Carney, unlike Trudeau, is a pragmatic leader who is choosing to see the big picture when it comes to the India-Canada relationship instead of pandering to the Khalistanis. This signalling was impossible to miss on the eve of the G7 summit when Khalistani groups were threatening to disrupt PM Modi's visit with charged-up protests taking place in Calgary, but Carney refused to budge to the threats and went ahead with his plans to host PM Modi. Carney's logic was simple: his predecessor had thrown an important diplomatic relationship to the wolves due to his political myopia, and G7 was a great opportunity to reset ties with India, a dynamic emerging economy. Maybe this is why Carney's dissociation with Khalistan was early to spot, as not even a single campaign rally of his had allowed the separatists to wield their flag or raise their cause. In comparison, opposition leader Pierre Poilievre had pandered fully to the Sikh separatists. STORY CONTINUES BELOW THIS AD Unlike other Canadian leaders such as Trudeau and Poilievre, Carney understands the importance of India as a country whose global influence is growing each passing day. In a press query, he noted India's leadership on the world stage and called his meeting with PM Modi a 'foundational' necessary first step towards much-needed repair of bilateral ties. As per him, India is the fifth largest economy in the world and the most populous country, which is also central to the global economic flow by being at the heart of crucial supply chains. Carney's own recognition of India's economic significance was also driven by the diplomatic pressure that his administration faced from the other G7 countries. In an interview with a Canadian network, Vina Nadjibulla from the Asia-Pacific Foundation of Canada noted that there was a strong push from other countries to invite India to the G7 summit, leaving Canada with little choice. Now that Carney has finally embraced a friendlier approach towards India as a sign of his political maturity, Canada stands to benefit a lot from the relationship. India, after all, is Canada's tenth largest trading partner with an emerging market of 1.4 billion people for its agriculture, hi-tech and educational services offerings. There is also a two-million-strong Indian diaspora in Canada, of which the Khalistanis are just a small fringe. At a time when even big players in the West are looking to court India, Trudeau's alienation of India was a strategic suicide. It seems Carney for now has done a great job in mending the bridges. But will the Khalistan issue disappear from the Canadian political landscape and also become irrelevant in the India-Canada bilateral relationship? STORY CONTINUES BELOW THIS AD Well, hardly so because the Western countries, especially their deep states, have carefully nurtured the K-elements as an asset to balance a rising India. Whenever India will not follow their preferred course of diplomatic action, they will not take a moment to deploy the Khalistani separatists. On this matter, even Carney would not be any different from Trudeau. Not to forget that Khalistanis not only remain a strongly funded cause in Canada, but their activities to canvass support domestically are still continuing in the garb of freedom of speech even today. For now, the Canadian leadership seems to have understood the importance of India as a key partner, so we should make the most of it. But India's own efforts to keep the Khalistanis in check in the Western societies, including Canada, must go on without an iota of hesitancy. The author is a New Delhi-based commentator on geopolitics and foreign policy. She holds a PhD from the Department of International Relations, South Asian University. She tweets @TrulyMonica. The views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost's views. STORY CONTINUES BELOW THIS AD

Time of India

an hour ago

• Time of India

Investor's tip to Indian manufacturers: Adopt tech and become 'Silicon Valley' for global funds

Indian investor Ankit Kedia urges the manufacturing sector to adopt affordable AI and tech to build a 'home-grown Silicon Valley,' leveraging government incentives and tier 2 and tier 3 cities. At the Super AI event, he highlighted rising investor interest, global potential, and plans to raise Rs 400 crore for Capital-A Fund-2. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Given the government's generous incentives, the Indian manufacturing sector should adopt technology to become a " Silicon Valley " that attracts global sovereign funds, said Bengaluru-based industrialist-turned-investor Ankit Kedia."Eventually, we should build Indian manufacturing startups that expand abroad as part of our future plans, as we want to make products for the world with a home-grown Silicon Valley-type ecosystem," Kedia said in an interview to PTI at the Super AI conference and exhibition held June 18-19 technology must be made affordable for these cash-strapped manufacturers operating in lower-cost environments in tier 2 and tier 3 cities, he already recognised as a technology hub and often called India's Silicon Valley, should now focus on manufacturing, especially by leveraging advanced technologies such as artificial intelligence, he who is currently working on a Rs 400-crore Fund-2 under his five-year-old Capital-A, shared his vision for the Indian manufacturing sector over the next 15 years, aiming for a strong foundation across the country, starting with low-cost factories in tier 2 and tier 3 two decades of experience in various industries and five years of running Capital-A Fund-1, Kedia is focused on technologies for the manufacturing sector, which he wants to combine with his long-term investment horizon of 15 to 20 has explored opportunities for the use of AI in manufacturing at the Super AI show, stating that he is returning home to raise Rs 400 crore for Fund-2, which will be strategically invested in factories in tier 2 and tier 3 cities such as Amritsar, Pune, Ahmedabad."We want hardware producers in these cities to form the foundation of our future manufacturing ecosystem and to share prosperity across the country," he said."India's large consumer market, along with the government's Production Linked Incentive (PLI) schemes, provides further confidence to investors to support small and medium-sized software or hardware manufacturers, who will have a low-cost advantage when competing globally," he also sees international sovereign funds moving to India for better returns on investment, especially as they face pressure from global Fund-1 has reported an Internal Rate of Return (IRR) of 28 per cent and is being tracked at 1.8X, Kedia said."Such fund returns are becoming more and more attractive to sovereign funds in Europe and the United States," said the fund manager, who invested Rs 120 crore under Fund-1 across 25 investments five years ago."The strong domestic market, the stability of the Indian ecosystem, and the potential of leveraging an increasing number of free trade agreements (FTAs) between India and international markets are all plus points for our manufacturing sector," he Arora, founder and CEO of Noida-based Macgence, noted that more and more enterprises are shifting to AI-automation to be more cost-effective and capture a bigger share of the market through efficient production."Small manufacturers in tier 2 and tier 3 city regions are able to use AI to communicate with their clients - a real time translation is offered to these small manufacturers to communicate in any language with clients."This will increase their communication skills and reach to global businesses as well as a large audience," said the 24-year-old who started with a language solutions company and now runs training data solutions for AI companies 7,000 participants from more than 100 countries attended the Singapore Super AI.

Time of India

an hour ago

• Time of India

Cognizant to invest $183 million for new India campus, add 8,000 jobs

BENGALURU: Software services firm Cognizant Technology Solutions will invest 15.82 billion rupees ($182.76 million) to build a new campus in south Indian city of Vishakapatanam that will create about 8,000 jobs, the state government announced on Friday. Commercial operations will begin in March 2029, an Andhra Pradesh government press release said. Cognizant did not immediately respond to a request for comment. The announcement comes just months after India's top IT firm, Tata Consultancy Services , unveiled plans for 13.70 billion rupee campus in the same city, and is expected generate 12,000 jobs. The move aligns with Cognizant's strategy to optimise real estate costs. In May 2023, Chief Executive Ravi Kumar S said the company would relinquish 11 million square feet of office space globally, mainly in India's largest cities, while investing in tier-2 Indian cities. Globally, IT companies, including those in India's $283 billion sector, are taking cost-cutting measures such as monetising real estate assets and delaying wage increases amid demand uncertainty. Last month, the Teaneck, New Jersey-based company raised its annual revenue forecast and beat first-quarter results driven by increased demand for AI-powered IT services. Cognizant expects 2025 annual revenue between $20.5 billion and $21.0 billion, compared to previous outlook of the midpoint of $20.30 billion to $20.80 billion.