Saturday, 21 June, 2025

Capillary’s DRHP Warns of Intensifying Competition and AI-Driven Disruption Ahead of IPO

Capillary Technologies, in its Draft Red Herring Prospectus filed June 18, 2025, cautions investors about rising competition in enterprise customer acquisition and retention, fueled by AI advancements. The Bengaluru-based SaaS loyalty provider reported ₹598 Cr in revenue (up 14%) but notes that Gen AI may enable clients to build internal solutions, reducing dependency. To counteract these threats, Capillary plans increased R&D spending—including ₹151 Cr this year.