Capillary Technologies, one of India's few blue-eyed startups launched along with Flipkart in 2008, is on verge of raising a fresh round of funding, estimated at around $30 million, reported Economic Times.

The funding round is expected to take place in February.

The report further stated that the funding will primarily be secondary in nature, with just a third of the funds raised expected to come into Capillary as primary capital.

'Primary' means a direct investment in a company, for e.g - the VC gives a company money, and in exchange the company issues new shares for the VC. These new shares dilute the existing shareholders. While, 'Secondary' typically means buying existing shares from existing investors.

The fresh funding is expected to be led by its existing investor, marquee private equity firm, Warburg Pincus, and is likely to have a large secondary component.

Headquartered in Singapore & Bengaluru, Capillary last raised $45 Million from Warburg Pincus, Sequoia Capital and Norwest Venture Partners, in September 2015. In total, excluding the upcoming funding, Capillary has raised $90 million.

Capillary is expected to use the proceeds from upcoming funding to expand its footprints, particularly in China, where it has already put a team in place, in July 2016. Additionally, it will also be building artificial intelligence products focused on offline retail, according to the sources of ET.

Founded in 2008 by Aneesh Reddy, Krishna Mehra and Ajay Modani, (the later two having left the company about 3 years ago), Capillary Technologies was incubated in Indian Institute of Technology, Kharagpur (IIT-KGP) and despite not being heavily funded like Flipkart, the company is one of few respected startups in not just India but globally too.

In June 2013 Harvard Business Review used Capillary as a Case for reverse Innovation in Tech Startups. In December 2016, Google's Vice President for South East Asia and India, Rajan Anandan joined Capillary as a Board member.

Moreover, in last couple of years, Capillary has made few important acquisitions as well. In September 2015, Capillary acquired an eCommerce software platform MartJack as one of the biggest acquisitions of 2015 and in October 2016, Capillary acquired SellerWorx, an eCommerce services and technology company.

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