This Bengaluru-based company wants to raise ₹1,020cr via IPO
What's the story
Amagi Media Labs, a leading provider of cloud-based broadcast and video content solutions, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The Bengaluru-headquartered company is planning an initial public offering (IPO) to raise ₹1,020 crore. The proposed IPO includes a fresh issue of shares worth ₹1,020 crore, and an offer for sale (OFS) of 34.2 million shares by selling shareholders.
Stakeholders
Key stakeholders
The OFS will see investors such as PI Opportunities Fund I, Norwest Venture Partners X (Mauritius), PI Opportunities Fund II, Accel India VI (Mauritius) Ltd, Accel Growth VI Holdings (Mauritius) Ltd, Trudy Holdings, and AVP I Fund offloading their shares. Individual shareholders will also be a part of this process. The firm is considering raising ₹204 crore through a pre-IPO placement which would reduce the fresh issue accordingly.
Utilization
Plans for IPO proceeds
Amagi Media Labs intends to use the proceeds from the fresh issue, worth ₹667 crore, for technology and cloud infrastructure investments. A part of it will also be used for inorganic growth via unidentified acquisitions and general corporate purposes. The company is backed by top venture capital firms such as Accel, Avataar Ventures, Norwest Venture Partners and Premji Invest.
Operations
Business model and growth
Founded in 2008, Amagi Media Labs connects media companies with their audiences through cloud-native technology. It enables content providers and distributors to upload and stream videos over the internet on smart TVs, smartphones, and apps. The company's business is divided into three main divisions - cloud modernization, streaming unification, and monetization of marketplace. In FY25, Amagi reported revenue from operations of ₹1,162 crore with a CAGR of 30% from FY23 to FY25.
Management
IPO management and future plans
Kotak Mahindra Capital, Citigroup Global Markets India, Goldman Sachs (India) Securities Private Limited, IIFL Capital Services, and Avendus Capital will manage the company's IPO. The equity shares of Amagi Media Labs are proposed to be listed on BSE and NSE. Despite its US-centric revenue model, the company sees potential in the Indian market due to the rise of free ad-supported TV services.