Amagi's valuation crosses $1.4 bn amid funding woes, raises $100 mn

The media technology provider has raised over $100 mn in investment, inclusive of $80 million in primary capital, from global growth equity firm General Atlantic

Amagi, a leading media technology provider, has raised over $100 million in investment, inclusive of $80 million in primary capital, from global growth equity firm General Atlantic, amid a funding winter. The investment brings Amagi’s valuation to $1.4 billion, representing an increase from the $1 billion valuation the company achieved in March 2022 with a $95 million investment from Accel, Norwest Venture Partners and Avataar Ventures, amidst prevailing market conditions. 

The funding would help the Bengaluru-based company strengthen its support infrastructure for customers and invest in artificial intelligence-driven personalization, advertising, and live streaming solutions, particularly in the FAST ecosystem.

“We have set ourselves the ambitious goal of developing futuristic technology solutions that can help media companies deliver premium personalized content and engaging advertising experiences to their consumers,” said Baskar Subramanian, Co-founder and CEO of Amagi. “We believe that General Atlantic, with their longstanding history of helping technology companies build enduring models, is the ideal investment partner for this stage of our growth journey,” Subramanian added.

With the global media and entertainment industry projected to reach nearly  $3 trillion in revenues by 2026, Amagi said there are significant opportunities for growth through organic and inorganic activities.

Amagi said it has continued to grow and crossed the $100 million ARR (annual recurring revenue) threshold after a record second quarter (July-September). The three venture capitalist firms remain as Amagi’s investors along with Premji Invest and Nadathur Holdings. General Atlantic’s investment is expected to close following receipt of regulatory approval.

Amagi offers a full suite of solutions for the creation, distribution, and monetization of live, linear, and on-demand channels across cable, OTT, and CTV-led free ad-supported streaming TV (FAST) platforms globally. 

“Amagi has demonstrated a consistent ability to anticipate key trends, acting as an early mover in the rise of free ad-supported streaming TV,” said Shantanu Rastogi, Managing Director and Head of India at General Atlantic.  “The company has also championed the use of cloud technology to optimize results for their broadcast and streaming partners globally.”

Founded in 2008, Amagi was initially incubated at IIM Bangalore’s innovation and entrepreneurship hub NSRCEL. Now its clients include ABS-CBN, Curiosity Stream, Cinedigm, Warner Bros. Discovery, Fox Networks, NBCUniversal, and Vice Media, among others. The company has now expanded into Germany, South Korea, and Australia, bolstering its international presence and staying closer to customers in growth markets.

Amagi has raised funding at a time when the country is experiencing a funding winter and a growing list of top tech unicorns are laying-off employees in an attempt to conserve cash and focus on profitability. Indian start-ups raised $3 billion in Q3 2022 (July-September), which was 57 per cent lower than the previous quarter, according to a report by market intelligence firm Tracxn. This was also 80 per cent lower than the peak funding of $14.9 billion received in the same quarter last year.