Amagi hires Kotak, Citi, IIFL, Goldman to raise up to ₹3,200 cr in IPO

Amagi was valued at $1.4 billion in November 2022.
Amagi was valued at $1.4 billion in November 2022.

Summary

  • Amagi, whose clients include NBC Universal, CBS, USA Today and Rakuten, is likely to file draft IPO papers after April. The media tech startup is backed by marquee investors including General Atlantic and Accel.

Media technology unicorn Amagi Media Labs has hired Kotak Mahindra Capital, Citigroup, IIFL Capital and Goldman Sachs as investment banks to raise up to 3,200 crore in an initial public offering (IPO), two people aware of the matter said.

The company, which counts NBC Universal, CBS, USA Today and Japan’s Rakuten Group among its clients, is likely to file draft IPO papers after April, the people said on the condition of anonymity. Amagi is backed by marquee investors including General Atlantic and Accel.

“It will be a mix of offer for sale (OFS) and primary raise. The primary capital will help the company expand its operations and pursue inorganic activities," one of the two people said, adding the company may raise 3,000- 3,200 crore from the issue.

Also read | More tier-II companies are likely to drive India’s IPO boom in 2025

“Amagi is targeting an IPO in the next fiscal. It is likely to realign the cap table with some early investors exiting ahead of the IPO. The details are yet to be finalized," the second person said, adding the IPO may value the company at $1.8-2 billion.

Over the last couple of years, the company has discussed IPO plans, and continues to evaluate the prospect from time to time, an Amagi spokesperson said in response to a query. "So, there is nothing new to comment on bankers, IPO size, valuation or timing of the IPO." Spokespersons for Citigroup, Goldman Sachs, IIFL and Kotak did not respond to queries.

International Financing Review (IFR) was the first to report on Amagi's IPO plans on 15 January.

Also read | India sees more startups encashing Esops in 2024 in pre-IPO, secondary deals

Amagi's fundraise

The startup was valued at $1.4 billion in November 2022, when it raised more than $100 million from investors led by General Atlantic. Before that, in March 2022, it had raised $95 million in a round led by venture capital firm Accel at a unicorn valuation. In September 2021, it raised $100 million from Accel, Avataar Ventures and Norwest Venture Partners. It also counts Nadathur Holdings, the venture investing arm of N.S. Raghavan and Premji Invest as investors.

Founded in 2008 by Baskar Subramanian, Srinivasan K.A. and Srividhya Srinivasan, Amagi is a software-as-a-service (SaaS) company, providing cloud broadcast and targeted advertising software. It helps media companies create, distribute and monetize streamed content, serving a range of markets in the US and Europe.

Also read | Small bets surge as new wave of angel investors chases startups

In FY24, Amagi's operating revenue grew 29.18% 880 crore, while Ebitda margins improved from -45% in FY23 to -25% in FY24. Ebitda is short for earnings before interest, tax, depreciation and amortization.

Demand for Amagi’s services is rising as consumers worldwide binge on movies and TV shows, with the pandemic providing an added boost.

Amagi’s platform connects content owners and distribution channels. It supports more than 800 content brands and over 5000 channel deliveries on its platform in over 150 countries. It has presence in New York, Los Angeles, Toronto, Mexico City, London, Paris, Sydney, Seoul, and Singapore; broadcast operations in New Delhi; and innovation centres in Bengaluru, Zagreb (Croatia), and Łódź (Poland).

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
more

topics

MINT SPECIALS