Amagi cuts IPO fundraise to ₹816 crore to broaden investor base

The downsized offer values Amagi at $869 million at the top of the price band versus its $1.4 billion valuation back in 2022, after it secured a $100 million investment from General Atlantic.

The company has fixed a price band of ₹343 to ₹361 per share for its ₹1,788.6 crore IPO, which also includes an offer-for-sale (OFS) component.

Amagi's public market debut makes it the first large tech IPO of 2026 in India, marking the beginning of a streak of software-as-a-service companies that are either prepping for a public market debut or are considering listing. The list includes the likes of Leadsquared, BusinessNext, Zenoti, Icertis, Mindtickle, Juspay and Whatfix. In 2025, Capillary Technologies was the only large SaaS listing in the country.

“If you look at our financials, we're moving very clearly into positive territory. It means we have more strength in the business and that's why we don't need all that cash," Amagi chief executive and co-founder Basker Subramanian told Mint.

The anchor book opens on 12 January, with the IPO open to the public from 13 January till 16 January and allotment due on January 19.

Amagi’s revenue from operations grew at a compound annual growth rate of 30.7% between FY23 and FY25, according to its red herring prospectus filed with the Registrar of Companies.

The company reported revenue of ₹1,162 crore in FY25, while losses stood at ₹68.7 crore. In the first half of the ongoing financial year, Amagi posted a profit of ₹6.4 crore, compared with a loss of ₹66 crore in the same period last year.

OFS reshuffle

The IPO will also see fewer investors exiting through the OFS than initially planned. Of the seven institutional investors listed as sellers in the draft red herring prospectus filed with the Securities and Exchange Board of India, two—Accel’s $1.5 billion Growth Fund VI and Avataar Venture Partners’ first fund—have dropped out.

Institutional investors selling shares in the IPO now include Trudy Holdings (formerly Avataar Holdings), Premji Invest through its Opportunities Fund I and II, Accel India and Norwest Venture Partners.

“The idea has been to make the IPO as investor-friendly as possible," Subramanian said. “We want to get the right set of both foreign and domestic institutional investors to participate, from a book strength standpoint."

Amagi’s founders—Subramanian, Srividhya Srinivasan and Srinivasan KA—are not selling any stake through the IPO.

The IPO proceeds will go towards the company's further investments in its cloud infrastructure and inorganic growth.

Skipping a round

Amagi had earlier considered a pre-IPO fundraise of ₹204 crore, as disclosed in its DRHP, but eventually decided against it due to what Subramanian described as supply constraints.

“A pre-IPO round makes sense when you want to book blocks of people ahead of time so you can raise the money you want to actually raise," he said. “It doesn't make sense for us because we have less to sell but there's a lot of investor interest."

While roadshows drew equal interest from foreign institutional investors (FIIs) and domestic institutional investors (DIIs), Subramanian said the balance of power has been shifting towards the latter.

“Mutual funds are robust, SIP inflows are high. These are directionally driving the power shift to DIIs is how we look at it."

Given Amagi’s positioning as a deeptech software company, there was concern that non-technology-focused investors might find the business difficult to understand.

To address this, Subramanian personally conducted over 90 investor meetings across Chennai, Singapore, London, New York, Hong Kong and other cities.

“Investors wanted to know our growth sustainability, profitability, what the company's defensible technology moats would be and why they had a right to win over time," he said. “We were quite happy with both the questions and our ability to answer the questions in a way that they could understand it."

Founders becoming promoters has been a relatively recent trend in India’s public markets, particularly among new-age technology companies. Lenskart, Urban Company, Ather and Bluestone have all moved to this structure.

At Amagi, Subramanian said the change does not alter how the company operates. “We're going public but staying Amagi. I don't see any major changes in how we behave or run internally. Externally, we have to get more comfortable in how we communicate what gets done and how do we bring predictability in terms of our overall execution."

R&D focus

Amagi spent about 24% of its revenue on research and development in the previous year, though Subramanian expects that ratio to moderate going forward.

In recent years, the company has been increasing its investments in artificial intelligence, which it sees as a key driver for the cloud streaming and advertising business.

“The ratio of spends to AI is increasing dramatically because that should be the best bet for us from a future standpoint. I don't anticipate large R&D changes from a business standpoint today," he said.