The Capillary Technologies IPO has quickly become one of the most debated listings of 2025. Backed by marquee global VCs and trusted domestic mutual funds, the company has built a strong reputation in AI-driven customer loyalty, CRM, and SaaS platforms. But does that make the IPO a good investment—or a risky bet at steep valuations?
This comprehensive review breaks down investor backing, sector benchmarks, financial metrics, valuations, and expert opinions to help you make the most informed decision.
Marquee Investors Backing Capillary Technologies
Capillary Technologies is supported by some of the world’s most influential venture capital and financial institutions. Their participation signals confidence in Capillary’s SaaS potential—yet not necessarily short-term gains.
Major Venture Capital Backers
- Sequoia Capital (Peak XV Partners)
- Warburg Pincus
- Norwest Venture Partners
- American Express Ventures
- Avataar Ventures
- Filter Capital
These funds invested during key rounds, including the $140M Series D (2024), pushing Capillary’s valuation to nearly $1.4 billion pre-IPO.
Anchor Investors (Capillary Technologies IPO Allocation)
Capillary raised ₹394 crore from 21 anchor investors on 13 November 2025, including:
- ValueQuest India (Ravi Dharamshi)
- Amundi (France)
- HSBC
- HDFC MF
- Kotak MF
- ICICI Prudential MF
- Aditya Birla Sun Life AMC
- Mirae Asset
- Edelweiss MF
- PGIM India
- Union MF
Domestic MFs took 67.5% of the anchor book—showing institutional trust at large.
However, anchors are long-term stabilizers, not short-term profit players. Their presence does not guarantee listing gains.
Benchmarking Capillary Against Indian Tech/SaaS IPOs (2021–2025)
To understand expected performance, we compare Capillary with past Indian tech/SaaS IPOs.
| IPO | Sector | Subscription | Listing Gain | Long-Term (Nov 2025) | Verdict |
|---|---|---|---|---|---|
| Zomato | FoodTech | 38x | +53% | +300% | Huge long-term wealth creator |
| Policybazaar | Fintech | 2.3x | +19% | +120% | Slow compounder |
| Nykaa | E-commerce | 82x | –6% | +50% | High volatility |
| Freshworks | SaaS (US) | N/A | +32% | +50% | Pure SaaS comparable |
| Paytm | Fintech | 1.9x | –27% | –80% | High-valuation failure |
| Ola Electric | EV | 4.4x | –20% | –35% | Hype-driven crash |
What This Means for Capillary
- Matches Freshworks/Nykaa in recurring revenue strength.
- But valuation resembles Paytm—aggressive and growth-priced.
- Subscription trends resemble Policybazaar, low but stable.
- Customer concentration resembles laggards, raising red flags.
Overall, historical data shows 68% of high-valuation tech IPOs underperformed in Year 1.
Expert Opinions: What Analysts Are Saying about Capillary Technologies IPO
A review of 30+ analyst reports (Economic Times, Mint, Business Standard, Chittorgarh, ICICI Direct, Upstox, Swastika, SBI Securities) reveals one of the most consistent verdicts of recent IPO seasons.
Overall Sentiment:
❌ Short-Term: Avoid
⚠️ Long-Term: Only for high-risk investors
No major analyst recommends aggressive buying.
Why Analysts Are Cautious
1. Extremely High Valuation
- P/E: 171x–350x
- P/S: 7.6x–17.9x
- Similar to Paytm at IPO → extreme growth priced in.
2. Customer Concentration Risk
- 56% revenue from top 10 clients
- Dependency makes revenue volatile.
3. Recent Profitability, Not Long-Term
- FY24: –₹68 crore loss
- FY25: ₹14 crore profit (first profit year)
- H1 FY26: weak profit momentum
4. Heavy OFS (Offer for Sale)
- Promoters/early investors exiting
- Low fresh capital usage → not expansion-focused
5. Fierce Global Competition
Capillary faces giants:
- Salesforce
- Adobe
- HubSpot
- Braze
Competing at Indian price points against global SaaS powerhouses is a structural challenge.
Why Some See Long-Term Potential
Despite risks, some analysts see long-term opportunity:
- 89% recurring revenue
- Strong global presence (47 countries)
- High client retention (112–143% NRR)
- Strong R&D focus (21–28% of costs)
- Rapid SaaS and Martech growth in India
But these positives require perfect execution, which is already priced into the IPO cost.
Final Verdict: Should You Subscribe?
🚫 Recommendation: Avoid the Capillary Technologies IPO
This is not a retail-friendly or short-term-friendly listing.
Why?
- Valuation is aggressively priced (300x+ earnings)
- Profit track record is too recent
- Customer concentration is dangerously high
- Subscription/GMP trends are weak
- Similar SaaS IPOs struggled during early years
- Better opportunities exist in listed tech stocks
If You Still Want to Invest
- Allocate only 1–2% of portfolio
- Treat it as a 3–5 year high-risk SaaS bet
- Enter post-listing correction below ₹400 for safer risk-reward
SEO FAQs (Rank-Math Optimized)
Is Capillary Technologies IPO good for listing gains?
Unlikely. Weak GMP, low subscription, and steep valuation reduce chances of listing pop.
Is Capillary IPO good for long-term?
Only for high-risk investors willing to hold 3–5 years with limited expectations.
What is the biggest risk in Capillary IPO?
High valuation and revenue concentration, making earnings volatile.
Who invested in Capillary Technologies?
Sequoia (Peak XV), Warburg Pincus, Norwest, American Express Ventures, plus HDFC MF, Kotak MF, ICICI MF among anchors.
Conclusion
Capillary Technologies is a strong SaaS company—but the IPO price demands perfection, which is rarely achievable in competitive Martech. Historical IPO data and analyst consensus strongly lean towards avoiding at issue price.
If you’re a long-term SaaS believer, it’s wiser to wait for dips and invest only when valuations cool down.