Amagi Media Labs files draft IPO papers to raise ₹1,020 crore

Amagi Media Labs, a Bengaluru-based global leader in cloud-based SaaS solutions for broadcast and connected TV (CTV), has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹1,020 crore through an initial public offering (IPO). This much-anticipated listing marks a significant milestone in India’s fast-growing media technology ecosystem.

The offering comprises a fresh issue of equity shares worth ₹640 crore and an offer-for-sale (OFS) of shares aggregating up to ₹380 crore by existing shareholders.

IPO Details and Objective

As per the DRHP, the fresh issue proceeds will primarily be deployed to fuel Amagi’s product innovation, expand its global footprint, and strengthen its cloud infrastructure. A part of the funds will also be allocated toward strategic acquisitions, working capital, and general corporate purposes.

The OFS component will see partial exits by early investors, including Nadathur Fareast, Accel India, and Premji Invest, reflecting the company's maturation since its founding in 2008.

Amagi has appointed investment banks including J.P. Morgan, Kotak Mahindra Capital, and ICICI Securities as lead managers for the IPO.

Company Snapshot: Leading Cloud Broadcast Tech Pioneer

Amagi, co-founded by Baskar Subramanian, Srinivasan KA, and Srividhya Srinivasan, began as a local advertising platform and has evolved into a global SaaS player enabling content owners to launch, distribute, and monetize live linear channels on free ad-supported streaming TV (FAST) and broadcast platforms.

Its cloud-native technology powers over 2,500 channels across 40+ countries, working with marquee names such as NBCUniversal, ABS-CBN, and Discovery.

In FY24, the company posted consolidated revenue of ₹755 crore, a 38% YoY growth, with EBITDA margins improving on the back of operating leverage and global client additions.

Strong Tailwinds from Global CTV and FAST Market

Amagi is uniquely positioned in the fast-expanding global FAST and CTV markets. According to a report by Omdia, the global FAST segment is projected to grow at a CAGR of 35% and exceed $12 billion in revenues by 2027. As audiences shift toward ad-supported streaming platforms, Amagi's scalable cloud infrastructure offers a competitive edge.

Radhika Shah, media analyst at Axis Securities, commented,

“Amagi’s technology-led offerings cater to a clear market gap in cloud broadcast and monetization. Its asset-light model, subscription-based revenue stream, and partnerships with global content leaders make it a strong SaaS IPO play from India.”

Robust Investor Backing and Past Fundraises

Amagi has raised over $150 million from prominent investors across multiple rounds, including Accel, Norwest Venture Partners, Avataar Ventures, and Premji Invest. In its latest funding round in March 2024, Amagi was valued at approximately $1.8 billion.

The company's strong investor pedigree and consistent financial performance have reinforced confidence ahead of the public issue.

IPO to Test Investor Appetite for Tech-SaaS Plays

The proposed IPO comes amid renewed interest in Indian SaaS companies, following strong debuts by players such as ideaForge, RateGain, and Zscaler-backed startups. While broader tech valuations have seen correction globally, Indian SaaS players with niche global markets continue to command premium interest.

However, analysts caution that high-growth SaaS companies must strike a balance between topline expansion and profitability.

Vikram Mehta, senior analyst at Motilal Oswal Financial Services, stated,

“Investors will closely monitor Amagi’s growth sustainability, margin trajectory, and customer retention metrics post-listing. Given its high exposure to international markets, currency fluctuations and macroeconomic shifts are key variables.”

Investor Outlook: Long-Term Play in Niche Global SaaS

For retail and institutional investors, Amagi’s IPO offers an opportunity to invest in a rare Indian SaaS company with significant global revenue exposure and scalable IP.

The management’s focus on product innovation, global partnerships, and cloud infrastructure augments long-term competitiveness. With robust revenue visibility and expanding use cases across media, entertainment, and sports content distribution, Amagi could emerge as one of India's most successful public SaaS stories.

If market conditions remain favorable, the IPO could open in the next two to three months after receiving SEBI's nod.

Amagi Media Labs’ IPO filing is a signal of maturity and scale in India’s startup ecosystem, especially in the enterprise SaaS segment. The offering could unlock significant value for early investors while inviting broader market participation in India’s cloud-first innovation narrative.

As investors look for high-growth, globally-scaled tech companies, Amagi’s journey from a local ad-insertion startup to a global cloud TV powerhouse presents a compelling story—one that the IPO will now bring to Dalal Street.