The Indian startup ecosystem is set for a significant public market debut as Bengaluru-based software-as-a-service (SaaS) leader Amagi Media Labs prepares to list on the stock exchanges later this month. The company, a unicorn since 2022, is joining a growing list of new-age firms making their way to Dalal Street.
IPO Details and Revised Fundraising
The initial public offering (IPO) of Amagi Media Labs is set to open for subscription on January 13. The company has fixed a price band of ₹361 per share at the upper end. The total issue size is pegged at approximately ₹1,789 crore.
However, the fundraising strategy has seen a revision from initial plans. The fresh issue component, through which the company raises capital, has been reduced to ₹816 crore. This is lower than the originally targeted amount of ₹1,020 crore. The balance of the issue will be an offer for sale (OFS) by existing investors.
Prominent shareholders Accel and Norwest Venture Partners will be participating in the OFS. They will now collectively sell up to 2.7 crore shares, a reduction from the earlier estimated 3.4 crore shares. At the upper price band, the IPO implies a company valuation of around ₹7,810 crore.
Founder Vision and Post-IPO Holdings
In a notable show of confidence in the company's future, the founding trio—Baskar Subramanian, Arunachalam Srinivasan Karapattu, and Srividhya Srinivasan—are not selling any of their personal holdings in the IPO. Post-listing, the founders will collectively retain a 15% stake in the firm.
Explaining the rationale behind the public listing, co-founder Baskar Subramanian stated that there was no immediate pressure to raise funds from an investment perspective. He emphasized the strategic value of becoming a public entity. "A public company delivers value…also, given the longevity of the company, we wanted our employees to have some sort of liquidity event," Subramanian told TOI.
He further highlighted that an IPO provides the company with a valuable currency for potential future acquisitions, strengthening its growth arsenal.
Business Model and Use of Proceeds
Launched in 2008, Amagi Media Labs has carved a niche by helping media companies connect with their audiences using its cloud-native technology platform. The firm generates the bulk of its revenue from the US and European markets, showcasing its global reach.
The company plans to utilize a portion of the fresh capital raised from the IPO to invest in technology and bolster its cloud infrastructure. This move is particularly strategic amid the rapid advancement of Artificial Intelligence (AI), which is fundamentally reshaping operational models across industries, including media and broadcasting.
Amagi achieved the coveted unicorn status in 2022 after raising $95 million from investors, which valued the company at over $1 billion. Its upcoming listing paves the way for other Indian startups like PhonePe, Zepto, and Oyo, which are also reportedly eyeing public debuts in the near future.
