Amagi Media Labs

• Amagi Media Labs is coming out with a 100% book building; initial public offering (IPO) of 5,07,32,430 shares of 5 each in a price band Rs 343-361 per equity share. 
• Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
• The issue will open for subscription on January 13, 2026 and will close on January 16, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 5 and is priced 68.60 times of its face value on the lower side and 72.20 times on the higher side.
• Book running lead managers to the issue are Kotak Mahindra Capital Company, Citigroup Global Markets India, Goldman Sachs (India) Securities, IIFL Capital Services and Avendus Capital.
• Compliance Officer for the issue is Sridhar Muthukrishnan.

Profile of the company

Founded in 2008, Amagi Media Labs is a software-as-a-service (SaaS) company that connects media companies to their audiences through cloud-native technology. Its platform helps content providers and distributors upload and deliver video over the internet (commonly known as streaming) through smart televisions, smartphones and applications, instead of traditional cable or set top box services. It also helps to monetize such content through targeted advertising services for advertisers. Its technology has enabled the streaming of marquee events, such as the 2024 Paris Olympics, Union of European Football Association (UEFA) football tournaments, the Academy of Motion Picture Arts and Sciences Awards (commonly known as the ‘Oscars’), and the 2024 U.S. Presidential debates.

The media and entertainment (M&E) industry is undergoing a structural shift towards a “new video economy”, led by the transition from traditional cable television to video delivery over the internet. This shift is driven by changing viewer preferences, as audiences now expect to be able to access content anytime and on any device, including smartphones, smart TVs and other internet-connected platforms. Its cloud-based platform is designed to help media companies respond to the operational and business challenges of the new video economy. This platform integrates production, preparation, distribution and monetization workflows into a single window, allowing customers to reduce complexity, improve operational efficiencies and increase their content revenue.

The company’s business is organized across three key divisions; Cloud Modernization, Streaming Unification, and Monetization and Marketplace. These divisions are designed to address a specific set of challenges faced by stakeholders in the media and entertainment industry. Further, the company provide integrated solutions that help content providers, distributors, and advertisers to manage, deliver, and monetize video content across the OTT and internet-based video industry. its unified platform supports the entire content lifecycle, from video preparation and channel management to delivery, advertising, and analytics. This helps customers reduce infrastructure costs, improve operational efficiency, and scale across geographies and digital platforms.

Proceed is being used for:

• Expenses towards technology and cloud infrastructure
• Funding inorganic growth through unidentified acquisitions and general corporate purposes

Industry Overview

Broadcasting and streaming, a vital part of the M&E industry, have transformed the way viewers access and engage with content. These segments play a crucial role in content distribution, catering to evolving consumer preferences and technological advancements. The M&E industry is a vast and ever-evolving sector that shapes how viewers consume information, engage with content, and experience storytelling. The global M&E market was valued at Rs 200.9 trillion ($2.4 trillion) in Calendar Year 2019 and grew to Rs 251.1 trillion ($3.0 trillion) in Calendar Year 2024, at a CAGR of approximately 4.4% over Calendar Year 2019 to 2024, and is expected to reach Rs 301.3 trillion ($3.6 trillion) by Calendar Year 2029P. Within this expansive industry, the broadcasting and streaming segment (including advertising revenue) is projected to grow at a CAGR of 4.5% from Calendar Year 2024 to Calendar Year 2029P. With an approximately 16.6% share of the total M&E industry in Calendar Year 2024, it continues to play a pivotal role in shaping content consumption patterns and redefining viewer engagement.

One of the major benefits of shifting from on-premises infrastructure to cloud-based solutions is cost savings, with an estimated approximately 35-50% reduction in total cost of ownership over a five-year period. This substantial saving is primarily driven by lower capital and operating expenditures in cloud-based models. These estimates assume a total of approximately 45 channels, a 1+1 redundancy model to ensure infrastructure reliability, and human capital costs that only account for personnel required to maintain the operations centre. The SAM for global cloud broadcasting software grew from approximately Rs 81.9 billion (approximately $1.0 billion) in Calendar Year 2019 to approximately Rs 142.5 billion (approximately $1.7 billion) in Calendar Year 2024, at a CAGR of approximately 11.7%. The market is projected to reach approximately Rs 213.5 billion (approximately $2.6 billion) by Calendar Year 2029P, at a CAGR of approximately 8.4% over Calendar Year 2024 to Calendar Year 2029P. This growth is driven by increased demand for live streaming, cloud-based video services, a global surge in digital media consumption, and the need for scalable, secure, and real-time content delivery mechanisms among broadcasters.

With the increasing complexity of content creation, production, distribution, and monetization, M&E, companies are turning to specialized, integrated tools that solve industry-specific needs rather than relying on generic solutions. While horizontal SaaS platforms cater to a wide range of industries with broad-based functionalities, vertical SaaS is designed to address the nuanced workflows, compliance requirements, and complex operational challenges of a specific sector, in this case, the video content ecosystem. This targeted approach often results in higher product relevance, quicker adoption, and deeper penetration within the industry. Vertical SaaS platforms are not only better aligned with the day-to-day realities of content providers and distributors but also are able to evolve more quickly with industry trends, making them indispensable partners rather than just software vendors.

Pros and strengths

One-stop glass-to-glass solutions provider: The company offers comprehensive “glass-to-glass” (camera-to-screen) technology solutions that span the entire video value chain, from live content production and preparation to distribution and monetization. Its platform enables media companies to modernize their infrastructure, streamline operations, and unlock new revenue opportunities. Its cloud-native, data-driven technology helps customers transition from legacy on premise infrastructure to agile, scalable cloud-based systems. By doing so, customers are able to reduce operational costs, increase flexibility, and achieve greater reach across platforms and geographies.

Positioned within a three-sided marketplace to leverage strong network effects: The company operates at the intersection of content providers, distributors, and advertisers, serving a three-sided marketplace through its integrated, cloud-based solutions. The company’s network-driven model creates a flywheel effect. Content providers choose it for the broad reach it offers through its distributor network. As more content providers join, it is able to attract additional distributors seeking to expand their content libraries and increase viewer engagement. This larger audience, in turn, draws more advertisers, leading to increased ad revenues. These revenues flow back to content providers, enabling further investment in content creation and creating a cycle of growth and value creation across the ecosystem.

Proprietary, award-winning technology platform with artificial intelligence capabilities: Artificial intelligence is beginning to enable a significant shift in the media industry, enabling a high degree of automation and efficiency across the media and entertainment value chain. Given its platform-centric approach to media solutions, it is integrating artificial intelligence across its solutions to provide a unified experience across the platform. It refers to its artificial intelligence offerings as ‘Amagi INTELLIGENCE’ and are embedding both predictive and generative AI across the video value chain, from scheduling of content to ad monetization and data analytics.

Trusted by global customers with long-term relationships: As of September 30, 2025, the company served a diverse and global customer base of over 400 content providers, over 350 distributors and over 75 advertisers. As of September 30, 2025, it worked with more than 45% of the top 50 listed ‘media and entertainment’ companies by revenue (which comprise companies with a presence in streaming and broadcasting and excluding companies which are exclusively only into print media, outdoor advertising and content creation). The company has developed a structured and tested migration model to transition media customers from on-premise infrastructure to cloud-based workflows. This approach has helped its traditional broadcaster customers modernize their operations efficiently and at scale. It has maintained long-term and growing engagements with content providers, distributors and advertisers, average term of its relationships with its ten largest customers, as of September 30, 2025, being 4.00 years. The company has also not observed customer churn within its ten largest customers by revenue from operations for the six months ended September 30, 2025 and 2024 and the last three Financial Years.

Risks and concerns

Customer concentration risk impacting revenue stability: The company is dependent on certain key customers for a significant portion of its revenue from operations, with its largest, five largest and ten largest customers contributing to 14.06%, 30.94% and 40.19%, respectively, of its revenue from operations for the six months ended September 30, 2025 and 11.41%, 23.65% and 33.74%, respectively, of its revenue from operations for the Financial Year 2025. The loss of one or more of its key customers or an inability to replace such customers could adversely affect its business, results of operations, financial condition and cash flows.

High exposure to the United States for revenue generation: The company’s business and revenue from operations are highly concentrated in the United States. The company garnered 72.86%, 72.64% and 77.65% of its revenue from United States in FY25, FY24 and FY23 respectively. Any adverse changes in the geopolitical, economic or regulatory environment of the United States could adversely affect its business, results of operations, financial condition and cash flows. Additionally, the company’s business is exposed to risks arising from trade policy shifts, sanctions, export control measures and protectionist legislation in the United States, such as the imposition of tariffs, which could increase the cost of its services or restrict access to certain technologies and customers. While its services are not currently subject to tariffs imposed by the United States, the current trade environment continues to evolve, and future changes in policy or new measures affecting technology or digital services could increase its costs or affect the competitiveness of its offerings. Further, geopolitical tensions between the United States and other countries, such as China or Russia, or uncertainties arising from changes in U.S. administration policies could affect global economic stability, the global availability of cloud infrastructure and the operations of its customers.

Revenue concentration in the streaming unification business: A large portion of the company’s revenue from operations is attributable to its streaming unification division. This business division involves offering integrated technology solutions to media companies for the efficient delivery of video content across multiple digital platforms such as subscription video on demand (SVOD), advertising video on demand (AVOD), and free ad-supported television (FAST). Its streaming unification business division faces several operational risks. Rapid technological advancements in the streaming industry require continuous innovation and substantial investment in its technology infrastructure. Any delay or failure in developing new products or enhancing existing services to meet evolving customer demands and technological standards could lead to the loss of key customers or market share.

Rising employee costs could adversely affect profitability: The company’s employee benefits expense was Rs 3,856.88 million, or 53.40% of its total expenses and 54.72% of its revenue from operations for the six months ended September 30, 2025, and was Rs 6,948.10 million, or 54.50% of its total expenses and 59.76% of its revenue from operations for the Financial Year 2025. Increases in employee costs, including on account of increased competition or other factors, could adversely affect its business, results of operations, financial condition and cash flows.

Outlook

Amagi Media Labs is engaged in cloud-based broadcast and connected TV technology. Founded in 2008 and headquartered in Bengaluru, India, Amagi provides end-to-end solutions for content creation, distribution, and monetisation across traditional TV and streaming platforms. The company is positioned within a three-sided marketplace to leverage strong network effects. On the concern side, the company is dependent on certain key customers for a significant portion of its revenue from operations. The loss of one or more of its key customers or an inability to replace such customers could adversely affect its business, results of operations, financial condition and cash flows. Moreover, the company’s business and revenue from operations are highly concentrated in the United States, and any adverse changes in the geopolitical, economic or regulatory environment of the United States could adversely affect its business, results of operations, financial condition and cash flows. 

The issue has been offering 5,07,32,430 equity shares in a price band of Rs 343-361 per equity share. The aggregate size of the offer is around Rs 1740.12 crore to Rs 1831.44 crore based on lower and upper price band respectively. Minimum application is to be made for 41 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 32.24% to Rs 11,626.37 million for the Financial Year 2025 from Rs 8,791.55 million for the Financial Year 2024. Moreover, its restated loss for the year to Rs 687.14 million for the Financial Year 2025 from loss of Rs 2,450.01 million for the Financial Year 2024.

The company is focused on extending its product leadership through sustained investment in technology and innovation. It continues to invest meaningfully in research and development to enhance the performance, scalability, automation, user experience, and integration capabilities of its platform. Its goal is to strengthen its position as the “industry cloud” for the video category of the media and entertainment industry by expanding its existing solution portfolio and addressing emerging customer needs. Further, the company is focused on integrating artificial intelligence and machine learning capabilities across its cloud-native platform to improve operational efficiency, enhance content value, and accelerate automation across the media value chain. It intends to leverage AI as a core, embedded capability to enhance each of its solutions. It intends to use Amagi INTELLIGENCE, its in-house developed AI initiative, to streamline content operations, reduce manual effort, and improve decision-making across production, preparation, distribution, and monetization. The company’s current AIdriven capabilities include automated content scheduling and ad yield optimization, both of which help customers scale operations and maximize revenue with minimal manual intervention.