Mumbai Private equity giants General Atlantic and TPG Media are in talks to invest $100 million in technology firm Amagi, valuing the company at about $1.4 billion, three people with direct knowledge of the development said.
The people, requesting anonymity, said the transaction, through the sale of new and existing shares, is a markup from its value in March.
“Some existing employees and early-stage investors will partially sell their stake to bring in a new investor,” said one in three. “Approximately $40 million of the total fundraising will be secondary share sales,” the person said.
Amagi, which helps media companies create, distribute and monetize streamed content, has surpassed $100 million in revenue run rate and is profitable, with high-growth startups and A rarity among unicorns.
The second person quoted above said, “There is considerable interest in high-growth companies that have demonstrated superior unit economics and are already profitable.”
However, a company spokesperson denied that the company plans to sell the shares. “Amagi raised $95 million from investors in March of this year itself. We are not looking for new investments at this time.”
Amagi raised $95 million in March at a unicorn valuation led by venture capital firm Accel. In September 2021, it raised $100 million from Accel, Avatar Ventures and Norwest Venture Partners. It also counts NS Raghavan and Premji Invest’s venture investment arm Nadathur Holdings as its investors.
Amagi is in talks to raise a new round because it has “aggressive global plans,” and the more funding will help it execute its strategy to expand into other markets, the third executive above said.
“The company wants to grow manifold, and that will come from its overseas expansion plans,” the person said.
Founded in 2008 by Baskar Subramaniam, Srinivasan KA and Srividya Srinivasan, Amagi is a software-as-a-service, or SaaS, company that provides cloud broadcast and targeted advertising software.
Demand for Amagi’s services is increasing as consumers around the world binge on movies and TV shows, with the pandemic giving an added boost. The startup’s clients include NBCUniversal, CBS, USA Today and Japan’s Rakuten Group Inc. Amagi’s platform connects content owners and distribution channels. The company’s customer base grew by 59% in 2021 and is now spread across 40 countries. The company supports over half a million content brands and over 2,000 distribution channels.
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