Amagi fell in India for the first time, as the cloud TV software company tests investor appetite

Amagi Media Labs, a Bengaluru-based company that sells cloud software used to operate and monetize TV and streaming channels, saw its shares fall in its Indian market debut after raising 17.89 billion Indian rupees (about $196 million) in an initial public offering — a landmark deal in a market still dominated by consumer companies going public.

The shares opened at INR 318 on Wednesday, a 12% discount to the issue price of INR 361, before rising to INR 356.95 and later trading around INR 348.85, valuing Amagi at INR 75.44 billion (about $825.81 million), according to the National Stock Exchange. Amagi was last valued at $1.4 billion in a private funding round in November 2022, after a $100 million raise led by General Atlantic, and investors sought to buy more than 30 times the available shares.

The Bengaluru-headquartered company sells cloud software that helps TV networks and streaming services distribute and monetize video, and earns almost all of its revenue outside India — including about 73% from the U.S. and about 20% from Europe — making it a rare technology listing for export on Indian stock exchanges, CEO and co-founder Bhaskar Subramanian said in an interview.

The $196 million IPO included a fresh issue of shares worth INR 8.16 billion (about US$89.33 million), while existing investors sold about 26.9 million shares through an offer for sale. The deal was smaller than Amagi’s previous plan, after the company reduced the new issuance and reduced the number of shares that existing backers would sell from 34.2 million shares.

Norwest Venture Partners, Accel and Premji Invest were among the existing shareholders of Amagi who sold shares in the IPO. Subramanian told TechCrunch that the sales were just a “very small portion” of the holdings, and said the company’s founders had not sold a single share.

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

Accel privately retained nearly 10% stake in Amagi after the IPO, even as the listing generated gains of nearly 3.3x on the shares it acquired at around INR 108 per share. “In order to do the IPO, we are reluctantly taking out as little as possible to make it happen,” said Shekhar Kirani, a partner at Accel.

Founded in 2008 by Subramanian, Srividya Srinivasan and Arunachalam Srinivasan Karapathu, Amagi counts among its clients content companies such as Lionsgate Studios, Fox and Sinclair Broadcast Group, as well as distributors including Roku, Vizio, Rakuten TV and DirecTV, and advertising platforms such as The Trade Desk and Index Exchange.

Amagi is witnessing a shift as broadcasters and streamers move away from “big iron” hardware and satellite-based workflows towards cloud-based operations, Subramanian said, arguing that only a small portion of the industry has completed the shift so far. He said the company has also begun promoting new automation and AI-based tools to help media companies reduce labor-intensive operating costs.

The company’s revenue from operations rose 34.6% year-on-year to INR 7.05 billion (about US$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%, according to the prospectus (PDF).

Subramanian told TechCrunch that Amagi is betting that streaming and live video are still in the early stages of moving to the cloud, and estimates that less than 10% of the industry has made the shift, leaving a long runway as media groups modernize infrastructure and expand ad-supported streaming.

Rachit Parekh, partner at Accel, said the company’s appeal was that it was a “premium” and highly reliable platform for high-end clients, arguing that downtime during major live events can be very costly for broadcasters and streamers. This dynamic has helped increase customer retention and expansion.

However, Amagi is also competing with legacy streaming vendors that are racing to modernize their own offerings for the cloud, while its push toward AI-driven automation will test whether Amagi can expand beyond infrastructure into software with better profit margins without rising cloud costs impacting profitability.

Amagi said it plans to invest most of the new proceeds in technology and cloud infrastructure, allocating 5.50 billion rupees ($60.21 million) for this purpose, while also allocating funds for potential acquisitions and general corporate use, according to its prospectus.

Amagi’s debut comes as India’s IPO market has attracted a growing number of technology-led listings, supported by strong demand from domestic investors even as funding for late-stage startups remains weak. This shift has positioned public markets as both an option for financing growth and an exit path for early backers, a dynamic that has become more pronounced as private capital has become more selective.

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