Cloud Software Firm Amagi Files for IPO, Plans to Raise Rs 1,020 Crore
Bengaluru-based cloud software company Amagi Media Labs has filed draft papers with the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). The company aims to raise Rs 1,020 crore through a fresh issue of shares, while existing investors—including Norwest Venture Partners, Accel, and Premji Invest—plan to sell up to 34.2 million shares via an offer for sale (OFS).
Several individual shareholders, such as Prem Gupta, Rahul Garg, Rajesh Ramaiah, Rajat Garg, and Kollengode Ramanathan Lakshminarayana, will also divest part of their holdings through the OFS.
According to the draft red herring prospectus, Amagi intends to use Rs 667.2 crore from the fresh issue to invest in technology and cloud infrastructure. The remaining proceeds will be allocated for inorganic growth opportunities and general corporate purposes.
Founded in 2008 by Baskar Subramanian, Srinivasan KA, and Srividhya Srinivasan, Amagi provides cloud-based software solutions that enable TV networks, content owners, and streaming platforms to launch, manage, distribute, and monetize live, linear, and on-demand content. Its technology supports content delivery across cable, over-the-top (OTT), and free ad-supported streaming TV platforms, eliminating the need for traditional cable or set-top boxes.
Amagi’s client roster includes major names such as Lionsgate Studios, Vevo, Sinclair Broadcast Group, E W Scripps, Fox, Stingray, Network18, and Shemaroo.
For the financial year 2024-25, Amagi reported operating revenue of Rs 1,162.60 crore, up from Rs 879.10 crore in the previous year. The company also managed to narrow its losses to Rs 68.70 crore from Rs 245 crore year-on-year.
India’s Software-as-a-Service (SaaS) sector surpassed $15 billion in annual revenue in 2023-24, with a growing number of companies reaching $100 million in annualized recurring revenue, according to a recent JM Financial report. However, global SaaS valuations have seen a significant correction, especially among companies serving multiple industries, as investors shift their focus from aggressive growth to profitability and free cash flow.
Kotak Mahindra Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities, IIFL Capital Services, and Avendus Capital are acting as the book running lead managers for Amagi’s IPO.
