Amagi Media Labs shares slide in India market debut

Amagi Media Labs, a cloud software company, debuted on the National Stock Exchange in India. The company raised ₹17.89 billion (about $196 million) in its initial public offering. However, shares opened at ₹318 on Wednesday, representing a 12% discount to the ₹361 issue price. The stock later climbed to ₹356.95 and traded around ₹348.85, valuing the company at ₹75.44 billion (around $825.81 million). This valuation is down from its previous valuation of $1.4 billion in a private funding round in November 2022, which followed a $100 million raise led by General Atlantic.

Amagi represents a rare export-first technology listing on Indian exchanges, as it generates almost all of its revenue outside India. According to CEO and co-founder Baskar Subramanian, the company earns around 73% of its revenue from the U.S. and about 20% from Europe. Subramanian stated that Amagi is riding a shift as broadcasters and streamers move away from legacy hardware-based broadcast infrastructure—often called “big iron”—and satellite-based workflows toward cloud-based operations. He estimated that less than 10% of the industry has made this shift so far.

The IPO included a fresh issue—meaning new shares issued by the company—worth ₹8.16 billion (about $89.33 million), while existing investors sold about 26.9 million shares through an offer-for-sale, which refers to existing shares sold by current investors. Existing shareholders Norwest Venture Partners, Accel, and Premji Invest sold shares in the transaction, though Subramanian noted these sales represented only a very small portion of their holdings, and the co-founders did not sell any shares. Subramanian described the listing as a pit stop in a long journey. Accel retained close to a 10% stake in Amagi, locking in a roughly 3.3x gain on shares it acquired at around ₹108 per share. “To make the IPO, we are reluctantly exiting as little as possible to make this happen,” said Shekhar Kirani, an Accel partner.

Amagi, which was founded by Subramanian, Srividhya Srinivasan, and Arunachalam Srinivasan Karapattu, counts content companies like Lionsgate Studios, Fox, and Sinclair Broadcast Group as clients, alongside distributors such as Roku, Vizio, Rakuten TV, and DirecTV, and advertising platforms like The Trade Desk and Index Exchange.

The company’s financial highlights for the six months ended September 30, 2025, include:

• Revenue from operations grew 34.6% year-over-year to ₹7.05 billion (around $77.18 million).
• Net revenue retention—a metric measuring revenue growth from existing customers—was about 127%, meaning existing customers increased their spending by 27%.
• The company plans to allocate ₹5.50 billion ($60.21 million) of the fresh proceeds to invest in technology and cloud infrastructure.

Why it matters

Amagi’s IPO serves as a bellwether for export-first Indian tech companies, testing whether public markets will support specialized cloud infrastructure firms as they attempt to modernize legacy broadcast workflows.