Amagi shares fall on Indian stock market debut
Amagi Media Labs, a Bengaluru-based company providing cloud software for TV and streaming channels, saw its shares slide on its India market debut after raising ₹17.89 billion (around $196 million) in an IPO — a notable move in a market still dominated by consumer-focused listings.
Shares opened at ₹318 on Wednesday, a 12% discount to the ₹361 issue price, before climbing to ₹356.95 and later trading near ₹348.85, News.Az reports, citing TechCrunch.
The IPO valued Amagi at ₹75.44 billion (about $825.81 million), compared with a private valuation of $1.4 billion in November 2022, after a $100 million funding round led by General Atlantic. Investor demand had been strong, with applications for more than 30 times the available shares.
Amagi’s cloud software helps TV networks and streaming services distribute and monetize video, earning nearly all of its revenue outside India — around 73% from the U.S. and 20% from Europe, CEO and co-founder Baskar Subramanian told TechCrunch — making it a rare export-first tech listing on Indian exchanges.
The $196 million IPO included a fresh issue of shares worth ₹8.16 billion (around $89.33 million), while existing investors sold about 26.9 million shares via an offer-for-sale. This was smaller than the company’s original plan, which trimmed both the fresh issue and shares sold by existing backers from 34.2 million.
Norwest Venture Partners, Accel, and Premji Invest were among the existing shareholders selling shares. Subramanian said the sales were only a “very small portion” of holdings, with founders not selling a single share. “For us as an event, it’s a pit stop in a long journey,” he said.
Accel retained close to a 10% stake after the IPO, locking in roughly a 3.3x gain on shares bought at around ₹108 each. “To make the IPO, we are reluctantly exiting as little as possible to make this happen,” said Accel partner Shekhar Kirani.
Founded in 2008 by Subramanian, Srividhya Srinivasan, and Arunachalam Srinivasan Karapattu, Amagi counts content companies such as Lionsgate Studios, Fox, and Sinclair Broadcast Group among its clients, as well as distributors including Roku, Vizio, Rakuten TV, and DirecTV, and advertising platforms such as The Trade Desk and Index Exchange.
Subramanian said Amagi is riding a shift as broadcasters and streamers move away from “big iron” hardware and satellite-based workflows toward cloud-based operations, arguing that only a small portion of the industry has completed the transition so far. The company has also begun pitching new automation and AI-driven tools to help media companies cut labor-heavy operating costs, he said.
The company’s revenue from operations rose 34.6% year-over-year to ₹7.05 billion (around $77.18 million) in the six months ended September 30, 2025, while net revenue retention was about 127% — meaning existing customers increased their spending by 27%, per its prospectus (PDF).
Amagi is betting that broadcast and live video are still in the early stages of moving to the cloud, Subramanian told TechCrunch, estimating that less than 10% of the industry has made the shift, leaving a long runway as media groups modernise infrastructure and expand ad-supported streaming.
The company’s appeal lies in being a “premium” and highly reliable platform for blue-chip customers, said Rachit Parekh, a partner at Accel, arguing that downtime during major live events can be highly costly for broadcasters and streamers. This dynamic has helped drive high customer retention and expansion.
Nonetheless, Amagi is also competing against legacy broadcast vendors that are racing to modernize their own offerings for the cloud, while its push into AI-driven automation will test whether Amagi can expand beyond infrastructure into software with better profit margins without rising cloud costs eating into profitability.
Amagi said it plans to plow most of the fresh proceeds into technology and cloud infrastructure, allocating ₹5.50 billion ($60.21 million) for that purpose, while also setting aside funds for potential acquisitions and general corporate use, per its prospectus.
Amagi’s debut comes as India’s IPO market has drawn a rising number of technology-led listings, supported by strong domestic investor demand even as late-stage startup funding remains subdued. The shift has positioned public markets as both a growth-financing option and a path to exits for early backers, a dynamic that has become more visible as private capital has turned more selective.
India’s tech sector recorded 42 IPOs in 2025, up from 36 in 2024, per market intelligence firm Tracxn. Several venture-backed startups, including consumer and fintech firms, are also widely expected to test public markets in 2026 as the pipeline builds.
Similar news
