Amagi Secures $100M for Cloud Video Content Creation

Amagi Secures $100 Million in Funding for Cloud-Based Video Technology

Amagi, a leading media technology firm, announced on Friday the successful completion of a $100 million funding round. This capital injection is intended to accelerate the development of its cloud-based Software-as-a-Service (SaaS) technology, specifically designed for broadcast and connected television environments.

Investment Details and Existing Stakeholders

The funding round saw participation from Accel, Avataar Ventures, and Norwest Venture Partners, alongside continued investment from Premji Invest. Furthermore, stakes previously held by Emerald Media and Mayfield Fund were acquired. Nadathur Holdings remains a valued existing investor in the company. According to Baskar Subramanian, co-founder and CEO of Amagi, this latest funding brings the company’s total raised capital to $150 million.

Amagi’s Core Services and Global Reach

Headquartered in Bangalore, Amagi delivers cloud-based broadcast and targeted advertising solutions. These tools empower clients to efficiently create and monetize content for distribution across both traditional broadcast TV and streaming platforms, including prominent services like The Roku Channel, Samsung TV Plus, and Pluto TV. Currently, the platform supports over 2,000 channels operating in more than 40 countries globally.

Simplifying Complex Video Workflows

“Managing video presents significant technological challenges, involving large file sizes and substantial computational demands,” explained Subramanian. “Amagi’s core function is to provide content owners, regardless of their technical expertise, with a streamlined workflow and a scalable infrastructure. Our aim is to facilitate easy integration and enable effective advertising targeting and monetization.”

Consequently, Amagi’s clients typically experience operational cost reductions of up to 40% when compared to conventional delivery methods, alongside a five to ten-fold increase in ad impressions.

Rapid Growth and Market Expansion

This new funding arrives during a period of substantial growth for the company. Subramanian highlighted a 30-fold increase in growth within the United States over the past several years. With an audience reach exceeding 2 billion viewers, the U.S. represents Amagi’s largest market, though the company also anticipates significant expansion in Latin America and Europe.

Impressive Revenue and Customer Growth

Over the past year, Amagi’s revenue has increased by 136%, while new customer acquisition has grown by 44% year-over-year. Notable new clients include NBCUniversal, with Amagi’s platform powering the broadcast of the Tokyo Olympics for NBC, USA Today, and ABS-CBN.

Future Plans and Strategic Investments

Driven by the ongoing shift towards connected television, a market estimated at $50 billion, the company intends to allocate the new funding towards expanding its sales force, investing in research and development to enhance its product pipeline, and exploring potential mergers and acquisitions. Subramanian confirmed that Amagi has not yet made any acquisitions.

Global Presence and Infrastructure

In addition to its broadcast operations based in New Delhi, Amagi maintains an innovation center in Bangalore, alongside offices in New York, Los Angeles, and London.

The Future of Media Consumption

“Both consumer behavior and infrastructural requirements have reached a pivotal point, with emerging companies driving the next generation of media,” Subramanian stated. “We are a significant contributor to this growth, particularly in areas like live sports, news, and events.”

Investor Perspective on Amagi’s Potential

Shekhar Kirani, a partner at Accel, emphasized Amagi’s distinctive approach to enterprise SaaS, fueled by the $50 billion shift in video content consumption towards connected television platforms. He anticipates a rapid migration of spending to these platforms.

Disrupting the Traditional Streaming Landscape

While established media companies like Viacom and NBCUniversal have launched their own streaming services, alongside industry leaders such as Netflix and Amazon, Kirani noted a scarcity of SaaS companies facilitating this transition.

Long-Term Vision and Scalability

Kirani first engaged with Subramanian five years ago and was immediately impressed by the platform’s potential. He expressed his enthusiasm for supporting the company’s scaling efforts, believing that Amagi benefits from a strong tailwind due to its ability to save time and empower new content providers to distribute their content more efficiently.

“Amagi is pioneering a new category and is poised for rapid growth,” Kirani concluded. “They are already experiencing substantial growth and demonstrating impressive SaaS metrics by connecting content providers with any audience.”