Indian cloud company Amagi banks on technological transformation in the media sector to drive expansion

Amagi Media Labs Bets on Cloud Adoption to Drive Growth

By Haripriya Suresh

BENGALURU, Jan 13 (Reuters) – Amagi Media Labs, an Indian cloud software company supported by General Atlantic, is optimistic that a shift by media organizations toward cloud solutions will fuel its revenue expansion, according to CEO Baskar Subramanian.

Headquartered in Bengaluru, Amagi specializes in providing software for the broadcast and streaming television sectors. The company initiated a $199 million initial public offering (IPO) on Tuesday.

“Currently, only about 10% of media industry workloads have transitioned to the cloud. The real opportunity lies in the remaining 90% that has yet to make the move,” Subramanian shared in a Thursday interview.

Amagi is focusing on integrating artificial intelligence into its offerings to help media firms lower operational expenses. The company is channeling investments into developing both AI-centric and AI-enhanced tools across its suite of products, the CEO noted.

Additionally, Subramanian mentioned that Amagi is exploring ways to facilitate the worldwide distribution of streaming content.

The company’s client roster includes prominent names such as A+E Networks UK, Roku, Lionsgate Studios, and NBCUniversal.

With its IPO, Amagi is seeking a valuation exceeding $869 million, which represents a decrease of nearly 40% from its previous private market valuation of $1.4 billion in 2022. The IPO size was reduced from the initial draft proposal.

According to Subramanian, the decision to scale back the IPO was influenced by the company’s improved profitability and a diminished requirement for additional capital.

For the six months ending in September of the previous year, Amagi reported a profit of 64.7 million rupees ($716,679), a significant turnaround from a loss of 660.08 million rupees during the same period the year before.

Exchange Rate: $1 = 90.2775 Indian rupees

Reported by Haripriya Suresh; Edited by Mrigank Dhaniwala