Bengaluru-based SaaS startup Capillary Technologies is all decked up to make its stock market debut by the end of this week. As of today, November 18, 2025, the last day of its listing, the startup’s IPO was oversubscribed 52X. With this, it is all set to become 2025’s first pure-play SaaS company to walk down the D-Street aisle.

By the time this piece was published, the stock was trading at INR 606 (with a premium of INR 26) on the grey market, highlighting positive sentiment around SaaS-driven recurring revenue models.

A quick recap: Capillary’s IPO comprised a fresh issue of INR 345 Cr and an offer-for-sale (OFS) component of 92.3 Lakh shares, valued at INR 532.5 Cr at the upper price band of INR 577 per share. The company downsized the IPO just before filing its RHP on November 7, 2025. It had earlier proposed raising INR 430 Cr, along with an OFS of up to 1.83 Cr shares.

In the run-up to its IPO, Capillary raised INR 394 Cr from anchor investors. The startup’s IPO proceeds will largely head toward strengthening cloud infrastructure and accelerating product development.

Against this backdrop, let’s understand what the company does, what comprises its revenue streams and the potential risks stifling it.

Unlayering The Capillary Stack Bit By Bit

Founded by Aneesh Reddy in 2008, Capillary Technologies was originally incorporated as Kharagpur Technologies Pvt Ltd. It was only in 2012 that the company was renamed to Capillary Technologies.

Reddy, an IIT Kharagpur alumnus, built Kharagpur Technologies as a tech-driven customer engagement platform for enterprises. As for the name, our best........

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