Amagi Media Labs IPO
IPO Price Range: Not Announced Yet
Objectives of IPO
- The company’s IPO includes a fresh issue of equity shares and an offer for sale (OFS). The size of the fresh issue component is up to ₹1,020 crore. The offer for sale comprises up to 34,188,542 equity shares. The entire money from the offer for sale will go to the selling shareholders, including major investors such as PI Opportunities Fund-I, Norwest Venture Partners X – Mauritius, and Accel India VI (Mauritius) Ltd.
- From the fresh issue, it plans to utilize ₹667.21 crore for enhancing its technology and cloud infrastructure. This investment is meant to strengthen its core business as a SaaS provider focused on cloud-native technology. This funding also covers the payment of commitment fees required under the technology agreement.
- The remaining portion will be allocated toward financing unidentified acquisitions and meeting general corporate needs, as per the company’s DRHP.
Financial Performance of Amagi Media Labs
The company has shown strong momentum in its core business and a significant turnaround in its operating performance over the three years. Total income saw robust growth, increasing from ₹724.72 crore in FY23 to ₹1,223.31 crore in FY25, corresponding to a strong CAGR of 29.92%. This rise was primarily driven by the growing customer base (reaching 463 in FY25 from 396 in FY24 and 283 in FY23), increased platform usage (7,095 deliveries in FY25), and higher monetization (26.12 billion ad impressions in FY25).
Crucially, the focus on growth and scalability led to a major shift in operating efficiency. The Adjusted EBITDA Margin moved from a loss of -20.62% in FY23 to a positive 2.02% in FY25. Concurrently, the total loss for the year decreased sharply by a magnitude of 53.8% (CAGR), falling from ₹321.27 crore in FY23 to ₹68.71 crore in FY25. This dramatically improved the PAT Margin from -44.33% to -5.62% over the period.
Despite the improving operating performance, the net losses persisted due to the continued focus on business growth and expansion. The operating expenses, while declining as a percentage of revenue, still included large investments in technology and cloud infrastructure (which were ₹332.38 crore in FY25) and significant non-cash expenses, such as employee stock compensation (₹80.25 crore in FY25). Throughout this growth phase, the company maintained financial prudence by reporting nil total borrowings across all three years, while total assets remained stable, concluding at ₹1,425 crore in FY25.
Strengths and Risks
Strengths
It is the largest cloud-native software solution provider in its cloud playout segment by revenue for FY25. It offers comprehensive, "glass-to-glass" solutions across the entire content lifecycle (production, distribution, monetization), uniquely simplifying complex operations for customers.
Revenue from operations grew significantly at a CAGR of 30.70% between FY23 and FY25, reaching ₹1,162.64 crore in FY25. Operational metrics also surged, with the number of deliveries increasing 46.08% over the same period to 7,095.
Its Adjusted EBITDA became positive at ₹23.49 crore in FY25. This contrasts sharply with the negative ₹140.34 crore loss recorded in FY23, showing improving financial health and margin scalability.
The company's customer relationships are highly successful, as evidenced by a Net Revenue Retention (NRR) rate of 126.90% in FY25. This metric shows that existing customers are increasing their spending significantly year-over-year. The base of large customers also grew substantially at a CAGR of 21.40% between FY23 and FY25, rising from 19 to 28 customers contributing more than $1 million in annual revenue.
It commits heavily to research and development (R&D), employing 471 engineers who represent 53.28% of its total workforce as of March 31, 2025. This focus yields valuable intellectual property, including ten granted patents in key areas like ad insertion and playout automation.
It operates with nil total borrowings as of March 31, 2025, 2024, and 2023. This lack of financial debt minimizes interest risk and provides significant flexibility to fund its planned growth objectives from the IPO proceeds.
Risks
A vast majority of its revenue, 90.20% in FY25, came from the America Region (72.86%) and Europe (17.34%). Any adverse economic downturn or recession in these two developed markets could disproportionately affect its financial results.
Despite achieving positive adjusted operating profit, it continues to report net losses, with a loss for FY25 of ₹68.71 crore. Consequently, its diluted earnings per share (EPS) was negative (₹3.48) in FY25.
A significant portion of its revenue is transacted in foreign currencies, like USD and EUR. It does not actively hedge this exposure, meaning unexpected appreciation of the Indian Rupee could adversely affect revenues derived from multi-year fixed-rate foreign currency contracts.
It depends on a limited group of major clients, with its largest customer contributing 11.41% (₹132.65 crore) of revenue in FY25. Furthermore, its top ten customers accounted for 33.74% of revenue, indicating that the loss of a few key clients could severely damage its results.
Its operations rely fundamentally on cloud infrastructure provided by third parties. A disruption in these third-party services could severely affect its operations and ability to provide services to customers, especially given its cloud commitment fees.
Its core cloud-native business model requires major investments in third-party services. It has a contractual commitment to spend ₹2,330.97 crore on cloud services over six years, from May 2025 to April 2031. Disruptions or price increases from these external vendors pose operational risks.
How to Apply for Amagi Media Labs IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on Amagi Media Labs IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
Amagi Media Labs Shareholding Pattern
| Promoters & Promoter Group | 15.76% | |
| Name | Role | Stakeholding |
| Arunachalam Srinivasan Karapattu | Promoter | 4.71% |
| Srividhya Srinivasan | Promoter | 4.67% |
| Baskar Subramanian | Promoter | 4.67% |
| Vinculum Advisors LLP | Promoter Group | 1.71% |
| Public | 84.24% | |
| Name | Role | Stakeholding |
| PI Opportunities Fund-II | Public | 16.95% |
| Norwest Venture Partners X – Mauritius | Public | 14.29% |
| Accel India VI (Mauritius) Ltd. | Public | 11.1% |
| General Atlantic Singapore AML Pte. Ltd | Public | 8.37% |
| Trudy Holdings | Public | 6.24% |
| PI Opportunities Fund-I Scheme II | Public | 4.88% |
| PI Opportunities Fund-I | Public | 4.83% |
| Accel Growth VI Holdings (Mauritius) Ltd. | Public | 4.55% |
| Vida Trustees Pvt. Ltd. (Representing Kalpa Partners) | Public | 4.54% |
| Pandora Holdings | Public | 1.69% |
| Others | 6.8% |
About Amagi Media Labs
It serves a diverse and global set of customers, including major players like Vevo, Lionsgate Studios, and Roku. As of March 31, 2025, its customer base included over 400 content providers, over 300 distributors, and over 80 advertisers. This large customer base generated a strong Net Revenue Retention (NRR) rate of 126.90% in FY25. Its operational scale is significant, handling 7,095 deliveries in FY25, a growth of 46.08% over two years, and processing 5.81 lakh hours of content. Its key geographical markets are concentrated in developed regions: the America Region contributed ₹847.07 crore or 72.86%, of its revenue, while Europe added ₹201.66 crore or 17.34%, in FY25.
The company's value chain essentially takes video content and uses its technology to move it through all stages: organizing it, preparing it for multiple platforms, broadcasting it over the internet, and making money from it through targeted advertising. Its future strategy is based on a “Win, Expand, Extend” framework. It plans to aggressively integrate its internal Artificial Intelligence platform, Amagi INTELLIGENCE, to streamline content operations and enhance automation in areas like content scheduling and monetization. It also aims to scale profitably through disciplined capital allocation and expand into new geographies like Asia-Pacific, the Middle East, and India through strategic acquisitions and collaborations.
For more details, visit here: www.amagi.com
Frequently Asked Questions of Amagi Media Labs IPO
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Who are the promoters of Amagi Media Labs?
The company's promoters are Baskar Subramanian, Srividhya Srinivasan, and Arunachalam Srinivasan Karapattu. These three individuals collectively hold 14.05% of the pre-IPO equity share capital on a fully diluted basis. Baskar Subramanian also serves as the Managing Director and CEO.
Who are the competitors of Amagi Media Labs?
As per the DRHP, there are no listed players in India or internationally that offer a comparable end-to-end business model in the broadcasting and streaming ecosystem. Most competitors offer fragmented "point solutions", while it is the only end-to-end SaaS provider among 17 identified peers.
How does Amagi Media Labs make money?
It earns money primarily through the sale of services (SaaS contracts). In FY25, sales of services generated ₹1,161.61 crore, which comprised 99.91% of its revenue from operations. Revenue is earned by helping media companies modernize, distribute, and monetize video content.