ET Startup Awards 2025 | Comeback Kid: Capillary Technologies weathers a raging storm

For the Comeback Kid category, the ET Startup Awards 2025 jury aimed to recognise enterprises that not only demonstrated resilience and adaptability in the face of challenges but also emerged stronger than before. The jury’s focus was on the nominees’ persistence during their lows and execution impact during their highs. Bengaluru-based Capillary Technologies ultimately clinched the award, with the jury praising its tenacity and lauding the team for an impressive turnaround.

“They faced some very tough times but managed to expand into multiple international markets... It came back with a great product and is about to go public,” one of the jurors said during the deliberations.

In 2019-20, the software-as-a-service (SaaS) company faced a cash crunch when it shifted focus away from China and Asia to the US market. Within a few years, it successfully found a fit among US customers.

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In the wake of Covid-19, Capillary Technologies lost 80% revenue overnight owing to its retail sector-focus, which pushed it to diversify into other verticals and markets. Today, the North America and EMEA (Europe, Middle East and Africa) markets account for more than 75% of the company’s revenues. In 2024-25, it clocked Rs 275 crore, or 46% of its revenue, from its top 10 customers.

The jury members focused their initial discussions on Capillary Technologies and third-party logistics firm Shadowfax. The jurors credited Shadowfax for overcoming external challenges, while appreciating Capillary’s comeback from far deeper troughs.

“The numbers really tell the story for Capillary. After going through some really tough times during Covid, they’ve become profitable and the trajectory is good. It’s very impressive how they’ve captured the North America market… they power almost all major brands in the US,” another juror said.

Accel partner Prashanth Prakash recused from voting in this category as one of the nominees, FabHotels, is a portfolio company for the venture capital firm. Jury member Kalyan Krishnamurthy also recused as Flipkart is an investor in Shadowfax.

Capillary Technologies manages the backend of loyalty programmes for two Fortune 10 and 16 Fortune 500 companies.

“We are truly honoured to be recognised as the Comeback Kid at the ET Startups Awards. This award is a testament to the resilience and belief of our team, customers, and partners who stood by us through every high and low. Over the past few years, we’ve not only reinvented ourselves as a company but also redefined how loyalty is delivered for enterprises globally,” said Aneesh Reddy, founder and managing director of Capillary Technologies. “This recognition fuels our journey ahead as we continue to build one of the world’s most trusted and innovative loyalty SaaS platforms.”

The company filed its draft red herring prospectus in June this year for an initial public offering.

It is now focussing on making acquisitions and investments to expand its presence into different markets and business segments to substitute the customer acquisition cost required for traditional organic growth. It manages the backend loyalty programmes of big companies and conglomerates, including Tata Group, Aditya Birla Group, Domino’s, Shell and IndiGo. The majority of its revenue comes from its larger customers.

Capillary Technologies was founded in 2012 by IIT Kharagpur alumni Aneesh Reddy, Ajay Modani and Krishna Mehra. Modani and Mehra have since moved on from the business, leaving Reddy at the helm. In August 2023, the company elevated senior executives Sridhar Bollam and Anant Choubey to the cofounder status.

Other contenders

Yulu

A mobility-as-a-service (MaaS) platform, Yulu offers e-bikes for rent for delivery workers in partnership with ecommerce, food delivery and quick commerce companies. Yulu has also developed purpose-built two-wheelers for delivery agents.

Shadowfax

Third-party logistics player working with direct-to-consumer (D2C) brands and ecommerce marketplaces. Top clients include companies such as Nykaa, Zepto, Meesho, Flipkart, Swiggy, Zomato and Amazon.

FabHotels

FabHotels aggregates hotel properties for business travellers and corporates. It operates on an asset-light, franchisee model. It also runs a corporate travel management platform, TravelPlus.