Amagi Takes the IPO Route, Eyes Expansion and Global Growth

India-based media technology startup Amagi has officially become a public entity as it prepares for its much-anticipated IPO. This move is seen as a strategic step towards listing on the stock exchange soon. Amagi’s transformation into a public company sets the stage for one of the most talked-about entries in the media tech startup IPO space.

According to Inc42, in its filings with the Registrar of Companies (RoC), Amagi’s board approved a special resolution on May 23 to change its name from “Amagi Media Labs Private Limited” to “Amagi Media Labs Limited.”

Shift to Public Company Structure

According to reports, Amagi has restructured itself into a public limited company. This is a legal requirement for any firm planning to go public in India. The transition signals Amagi’s intent to pursue its Initial Public Offering, which industry watchers believe could happen within the next 12 to 18 months.

This development reflects the company’s growth ambitions and desire to scale further. The Amagi’s IPO valuation is expected to be substantial, though official numbers are yet to be disclosed. Market experts estimate it could run into billions of dollars, considering the company’s rapid expansion and growing global presence.

The company said, “The members are requested to note that the proposed conversion of the company from private limited to public limited would enable the company to raise funds from the public. To undertake this, the company is required to be converted into a public limited company in accordance with the applicable provisions…,”

Understanding the Amagi Business Model

To understand what makes the startup unique, it’s important to look at Amagi’s business model. The startup offers cloud-based solutions for broadcasting and streaming. It helps TV networks and streaming platforms deliver content globally using cloud infrastructure, rather than traditional satellite methods. This not only reduces costs but also gives greater flexibility and scalability.

Amagi serves clients in more than 40 countries and works with big names like NBCUniversal, CBS, and Discovery. It also supports content owners and platforms with ad-tech services, content distribution, and monetization tools. Its business model focuses on both software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS), making it an essential player in the evolving media landscape.

Amagi’s Financial Standing

Amagi’s decision to become a public entity comes a few months after reports revealed that the company had brought on board investment banks like Kotak Mahindra Capital, Citigroup, IIFL Capital, and Goldman Sachs to manage its INR 3,200 Cr IPO.

The IPO will include both a fresh issue of shares and an offer for sale (OFS). The funds raised will help Amagi grow its business and explore acquisition opportunities.

On the financial side, Amagi posted a consolidated net loss of INR 245 Cr in FY24, a 23.72% improvement compared to a loss of INR 321.2 Cr in FY23. Its operating revenue, however, saw a healthy jump of 29.18%, rising to INR 879.1 Cr from INR 680.5 Cr in the previous year.

Most of Amagi’s revenue comes from global markets. India contributed only INR 8 Cr, while the US accounted for 67% of its earnings, bringing in INR 591.5 Cr. The UK market also played a key role, contributing INR 115.5 Cr.

A Promising Future Ahead

The decision to become a public company is a big milestone for Amagi. With the groundwork for Amagi’s IPO now in place, the company is poised to unlock new opportunities for expansion and innovation. As one of the few global players in media technology to emerge from India, Amagi’s journey will be closely watched by industry peers and investors alike.

If successful, this could pave the way for more media tech startup IPOs plans to emerge from India’s growing tech ecosystem, further boosting the sector’s credibility on the global stage.