Amagi, a cloud-based SaaS company that provides solutions for broadcast and connected TV, has reported a 300% increase in its revenue for the fiscal year 2023 (FY23), reaching Rs 680 crore. The company also became a unicorn, or a startup valued at over $1 billion, after raising $95 million in a funding round led by Accel in March this year.
Amagi’s growth story
Amagi was founded in 2008 by Baskar Subramanian and Srividhya Srinivasan, who are both alumni of IIT Madras. The company started as a video encoding and streaming platform for broadcasters and content owners, and later expanded into cloud-based playout, scheduling, analytics, dynamic ad insertion, and monetization solutions.
Amagi’s clients include ABS-CBN, Warner Bros. Discovery, Fox Networks, Fremantle, Gannett, Gusto TV, NBCUniversal, Vice Media, among others. The company has also partnered with global players like Nevion and TAG Video Systems to enhance its product offerings.
Amagi claims to have over 400 TV networks as its customers globally. The company operates in India through its subsidiary Amagi Media Labs Pvt Ltd (AMLPL), which was established in 2017. AMLPL serves the Indian market with localized solutions and support.
Amagi’s financial performance
According to its latest quarterly report, Amagi posted a revenue of Rs 219 crore for the quarter ended September 30th 2023 (Q2 FY23), which was a 300% increase from the same quarter last year (Q2 FY22). The company also reported a net loss of Rs 18 crore for Q2 FY23.
The company attributed its strong growth to the increasing demand for cloud-based solutions from broadcasters and content owners amid the pandemic-induced shift to digital platforms. The company also said that it had crossed $100 million in annual recurring revenue (ARR) run rate by Q2 FY23.
For the full fiscal year 2023 (FY23), Amagi expects to achieve an ARR of over $200 million by March 31st 2024. The company also expects to become profitable by the first half of FY24.
Amagi’s future plans
Amagi plans to use its new funds to expand its product portfolio and customer base. The company aims to launch new features and functionalities for its existing solutions as well as develop new ones for emerging markets like Latin America and Africa.
The company also plans to invest in research and development (R&D) to improve its technology platform and enhance its security and scalability. The company has already set up an R&D center in Bangalore with over 100 engineers.
Additionally, Amagi plans to explore opportunities for strategic partnerships and acquisitions that can help it grow faster and reach new customers. The company has already acquired Tellyo’s business, which is a video encoding software provider based in Israel.
Amagi is one of the leading players in the cloud-based SaaS market for broadcast and connected TV. The company has shown impressive growth in terms of revenue and customer base over the last few years. With its new funding round led by Accel, Amagi is poised to become one of the most valuable startups in India and beyond.