Amagi Media Labs to raise Rs 1,020 crore; files DRHP with SEBI

Bengaluru: Amagi Media Labs Limited, a software-as-a-service (SaaS) company that connects media companies to their audiences through cloud-native technology, has filed the draft red herring prospectus (DRHP) with capital markets regulator SEBI to raise Rs 1,020 crore through an initial public offering (IPO).

Amagi, founded in 2008 by its promoters Baskar Subramanian, Managing Director & CEO; Srividhya Srinivasan, Chief Technology Officer; and Arunachalam Srinivasan Karapattu, President - Global Business, is backed by leading venture capital firms, including Accel, Avataar Ventures, Norwest Venture Partners, and Premji Invest.

The company works with more than 45 per cent of the top 50 listed ‘media and entertainment’ companies by revenue.

According to the DRHP, the proposed IPO of the Bengaluru-headquartered company combines a fresh issue of equity shares aggregating up to Rs 1,020 crore with an offer for sale (OFS) of up to 3,41,88,542 equity shares (3.41 crore equity shares) by the selling shareholders.

As part of the OFS, the Investor Selling Shareholders - PI Opportunities Fund I, PI Opportunities Fund II, Norwest Venture Partners X – Mauritius, Accel India VI (Mauritius) Ltd., Accel Growth VI Holdings (Mauritius) Ltd., Trudy Holdings, AVP I Fund, and certain Individual Selling Shareholders will be offloading shares.

Amagi proposes to utilise the net proceeds of the fresh issue towards investment in technology and cloud infrastructure (Rs 667 crore); funding inorganic growth through unidentified acquisitions and general corporate purposes.

Amagi is an end-to-end, AI-enabled cloud platform in the video category of the Media & Entertainment (M&E industry) serving as the ‘industry cloud’ for the sector.

Its business is organised across three key divisions - Cloud Modernization, Streaming Unification, and Monetization and Marketplace which addresses the requirements of three main categories of customers - Content Providers (including television networks, movie studios, production companies, sports leagues, and other media creators), Distributors (such as OTT platforms, telecom operators, and smart television manufacturers) and Advertising platforms and advertisers (including demand-side platforms, ad agencies, brands and technology providers that facilitate digital advertising transactions).

Amagi reported revenue from operations of Rs 1,162 crore in FY25, recording a compound annual growth rate of 30.70 per cent from FY2023 to FY2025, driven by new customer acquisition and increased use of the platform by existing customers. Amagi’s adjusted EBITDA margin improved significantly to 2.02 per cent in FY25, compared to (17.69 per cent) in FY24 and (20.62 per cent) in FY23.

The company, in consultation with the BRLMs, may consider a Pre-IPO Placement aggregating up to Rs 204 crore; prior to filing of the Red Herring Prospectus with the ROC. If the Pre- IPO Placement is undertaken, then the fresh issue will be reduced to the extent of such Pre-IPO placement.

Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, Goldman Sachs (India) Securities Private Limited, IIFL Capital Services Limited, and Avendus Capital Private Limited are the Book Running Lead Managers to the issue.

The equity shares of the company are proposed to be listed on BSE and NSE.