Amagi plays in India early, as a cloud TV app tests the investor’s appetite

Amagi Media LabsThe Bengaluru-headquartered company that sells cloud-based software used to manage and monetize TV and advertising channels, saw its shares fall in its Indian market after raising ₹17.89 billion (about $196 million) in an IPO – a deal that looks good in a market dominated by buyout companies going public.

Shares opened at ₹318 on Wednesday, a 12% discount from ₹361, before rising to ₹356.95 and later trading at around ₹348.85, valuing Amagi at ₹75.44 billion (about $825.81 million), according to the National Stock Exchange. The magicians were the final price was $1.4 billion in a private equity round in November 2022, after raising $100 million led by General Atlantic, and investors wanted to buy it. more than 30 times available parts.

The Bengaluru-headquartered company sells cloud-based software that helps TV and broadcast services distribute and monetize videos, and it earns almost all of its revenue outside India – including about 73% from the US and about 20% from Europe – CEO and co-founder Baskar Subramanian said in an interview, making it unaccountable.

The $196 million IPO included a new issue of shares worth ₹8.16 billion (about $89.33 million), while existing shareholders sold about 26.9 million shares through the sale. The deal was smaller than Amagi’s previous deal, after the company restructured and reduced the number of shares it sold and held back from 34.2 million.

Norwest Venture Partners, Accel, and Premji Invest were among Amagi’s previous investors to sell shares in the IPO. Subramanian told TechCrunch that the sale was a “very small part” of the investment, and said the founders of the company do not sell a single share.

“For us as an event, it’s a pit stop on a long journey,” he said.

Accel has retained a close to 10% stake in Amagi post-IPO, even as the listing clocks in at around 3.3x earnings on shares that earned around ₹108 per share. “To do the IPO, we are going out as slowly as possible to make it happen,” said Shekhar Kirani, a partner at Accel.

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 retailers including Roku, Vizio, Rakuten TV, and DirecTV, and advertising platforms such as The Trade Index.

Subramanian said Amagi is riding a wave of change as broadcasters and broadcasters move away from “heavy metal” and satellite-based workflows to cloud-based services, arguing that only a small portion of the industry has completed the transition so far. The company has also begun deploying new automated and AI-powered tools to help media companies reduce operating costs, he said.

The company’s revenue from operations rose 34.6% year-on-year to ₹ 7.05 billion (about $77.18 million) in the six months ended September 30, 2025, while gross margin was about 127% – meaning existing customers increased their savings by 27%. hope (PDF).

Magic is betting that broadcast and live video are still in the early stages of migrating to the cloud, Subramanian told TechCrunch, estimating that less than 10% of companies have made the switch, leaving a long way to go as media groups change infrastructure and expand ad-supported streaming.

The company’s appeal was to be a “premium” and highly reliable platform for blue-chip clients, said Rachit Parekh, a partner at Accel, arguing that downtime at major events could be too expensive for broadcasters and broadcasters. This has helped in customer retention and expansion.

However, Amagi is also competing with marketing vendors who are rushing to improve their cloud offerings, while its push into AI-driven systems will test whether Amagi can expand beyond infrastructure into programs with better margins without the cloud’s rising costs eating into profitability.

Amagi said it plans to invest heavily in new technology and cloud infrastructure, allocating ₹5.50 billion ($60.21 million) to do so, and also investing in potential acquisitions and corporate use, according to its expectations.

The launch of Amagi comes as the Indian IPO market has released the number of technology-driven listingssupported by strong domestic business demand even late start-up costs are still low. This shift has positioned the public markets as a source of income and a lifeline for early adopters, a strength that has become increasingly apparent. Private funds have changed dramatically.

India’s technology sector listed 42 IPOs in 2025from 36 in 2024, according to market intelligence firm Tracxn. A number of venture-backed startups, including consumer and fintech companies, are also expected to test public markets in 2026 as the pipeline builds.