Amagi has filed a draft red herring prospectus for an initial public offering on the Bombay Stock Exchange and National Stock Exchange of India.

The prospectus contemplates an issuance of new shares in an amount up to ₹10,200 million in value ($117.4 million USD at current exchange rates). Since the offering has not been priced, the valuation remains a matter of conjecture. For illustrative purposes, assuming the above threshold is met, then on a fully diluted basis a pricing at $5, $7.5, or $10 per share would yield approximate market capitalization results of $1.14 billion, $1.65 billion, or $2.16 billion.

Setting aside the fees associated with the IPO process, the above pricing examples would represent enterprise value to trailing revenue multiples of around 6.5x, 10.5x, or 14.0x, respectively.

There are lots of assumptions in the above (around mechanics of IPO and exchange rates; if our math is in error, we will update the post accordingly).

Those pricing figures are not chosen randomly, as Amagi’s November 2022 fundraising round occurred at a stated equity valuation of $1.4 billion.

The potential of an IPO has been discussed by Amagi management team for several years.

At the 2023 Devoncroft Executive Summit | Amsterdam, Amagi co-founder and CEO Baskar Subramanian fielded just such a question from the founder of Devoncroft, Joe Zaller.

“I think it was about 24 months ago that you were quoted as saying that in 24 months – which if I do the math, is now – you were going to IPO. So, what is the status with going public?” said Zaller.

Baskar responded, “Another 24 months. I’ll tell you the reasoning. We’re looking for a long-term play. It’s about 20 to 30 years. I think the industry is transforming. We want to continue to invest and build new things as we move forward.

“We raised a couple of hundred million dollars. Clearly, that allowed us the fuel that we need for the next few years, if not more fundamentally. And, you know, we are a subscription driven business, so we don’t have a lot of capital needs fundamentally. So, I think we’re very, very well capitalized for the next decade. All investors are growth private equity investors. They have a seven-year horizon. They’ve just come in a year back. I don’t see any good pressure to really do it. It’s a question of timing and wanting to do that” continued Baskar.

At the time of the above statement, Amagi had completed a fiscal year (ending in March) with an annual revenue total of $85 million USD. Over the next two fiscal years, the team generated year-over-year growth of approximately 30% in each year, bringing fiscal 2025 (ending in March) to $137 million (USD).

Use of IPO Proceeds

The market reception will render a verdict on timing, as for the ‘wanting to do it” there are interesting disclosures in the prospectus. This is, of course, a liquidity opportunity for existing shareholders – set to sell on the order of 34 million shares in the offering.

Beyond a shareholder liquidity event, the primary category for proceeds (~65%) is further investment in technology and cloud infrastructure. Amagi is already making considerable investments in technology, both its own development and in its partners. Of its complement of 884 employees, 471 (53%) are engaged in research and development. In terms of annual expenses, cloud infrastructure expenses were more than 27% of revenue in the latest fiscal year.

In form, cloud infrastructure expense is a fancy term for payments to Amazon Web Services (“AWS”), Amagi’s primary cloud platform. Payments to AWS were more than $30 million in the 2025 fiscal year. Total spend commitment with AWS is $272.5 million (USD) for the six-year period from May 1, 2025, till April 30, 2031.

Notable Financial Excerpts

Amagi’s gross margin was 69% in the 2025 fiscal year, similar to the level recorded in 2024, and up from 64.7% in 2023 . The largest category of cost of goods is the cloud infrastructure expenses already noted.

Operating margin (deduced by adding depreciation and amortization expense to EBITDA) have notably improved from a negative 46% figure in 2023 to -4% in 2025. The preferred presentation of operating profitability in the prospectus is Adjusted EBITDA. The below chart from the prospectus highlights the relative improvements in cost of goods (direct costs) and the operating expense categories. The primary contributor to the margin improvement has been the efficient scaling of sales, marketing, and support that has stayed at a relatively constant level (in absolute terms) and therefore has reduced as a percentage of revenue.

Source: Amagi Prospectus

Amagi’s growth is attributable both to an increase in the breadth of customers and the expansion into customers. Total customers grew from 283 in 2023 to 463 in 2025. Channels delivered during 2025 were 7,095, up from 3,325 in 2023. Over the same time span, the number of customers contributing more than $1 million to revenue grew to 28 (from 19). For the 2025 year, the ten largest customers accounted for 33% of total revenue, with a single customer (a leading American electronics and media company) representing 11% of revenue.

The America region represented 72.8% of overall revenue in 2025, with Europe contributing 17.3% of total revenue. The balance of revenue is 8.1% from Asia Pacific and 1.7% from the Middle East. While almost 80% of employees are based in India, less 1.5% of revenue comes from the geography.

Amagi breaks out revenue across three business divisions (definition from prospectus in italics):

• Cloud Modernization: This division captures Amagi CLOUDPORT and the former Tellyo business. This division enables television networks to transition to cloud-based systems by moving their media operations from traditional, hardware-based broadcast infrastructure to flexible, cloud-based systems. Our platform manages content preparation, scheduling and channel delivery, enabling customers to reduce their capital expenditure and scale operations efficiently.
• Streaming Unification: This division captures revenue from Amagi NOW. This division addresses the complexity of OTT distribution by supporting multiple business models, such as subscription video on demand (“SVOD”), advertising video on demand (“AVOD”), and free ad-supported streaming television (“FAST”) through a single platform.
• Monetization and Marketplace: This division contains revenues from ADS Plus, CONNECT, and THUNDERSTORM. This division enables customers to enhance revenue through advertisement ads at scale, while our marketplace solution facilitate contend syndication across multiple platforms.

Streaming unification is the largest contributor to revenue at 57% of sales in 2025. It is also the fastest growing, with year-over-year growth of 43.5% (2025). Monetization and marketplace is the next largest component of revenue, contributing 24.1% in 2025. Growth for monetization and marketplace was 38.1% in 2025 (versus 2024). Cloud modernization was 18.7% of revenue in 2025, registering an annual growth of 2.1%.

Competitive Positioning & Market Sizing

“We are a software-as-a-service company that connects media companies to their audiences through cloud-native technology.” Or, quoted in the voice of a third-party research agency, “as the media and entertainment industry’s only end-to-end, artificial intelligence enabled cloud platform (in the video category), we serve as the ‘industry cloud’ for the sector.”

The below chart is an initial snippet of the competitive positioning.

Source: Amagi Prospectus

Unpacking the presentation of the market opportunity and Amagi competitive positioning requires additional analysis and a longer post. There is a lot to unpack.

A more detailed analysis to follow.

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