BENGALURU: Amagi, a cloud-based SaaS technology for broadcast and connected TV that joined the unicorn club recently, sees a huge market opportunity in cloud-led solutions. It is one of the highest-valued media tech companies, and in the next five years, Amagi aims to grow bigger, given the consumer spend and shift towards OTT platforms. Baskar Subramanian, founder, Amagi Media Labs, in an interaction with TNIE said in the next five years, the company will have a globally expanded business.
Currently, 75% of its revenues come from the US market, 20% from Europe and 5% from Asia. “The US continues to be the largest market for us and in the next five years, it might contribute 50% and other geographies will contribute in a bigger way,” he said, adding television and content are global business.
Also, over the years, if more people start watching OTT content, advertising money spent on television will move to the internet. Subramanian said, “We are going to see metaverse, AR/VR experiences to be better and a lot more changes in interactivity. Gaming and video will start to converge in the next two years.”
The market opportunity for cloud-led solutions is estimated to be around $50 billion. The company's annual revenue run rate is nearly $100 million. Amagi, which has been in the UK, is also expanding in France, Germany and Australia.
The company recently raised around $95 million and it might take one more round of funding, depending on the acquisition possibility.
"We are a profitable company and there is no reason to raise funds. Our fundraising is largely from growth, M&A standpoint. It is growth capital for us as we don't need working capital," Subramanian said. In the next one year, Amagi plans to hire 250 people.
With more Indians consuming internet and OTT platforms, the founder of Amagi said that in the coming years, the percentage of entertainment spending will increase, the economy will grow and there will be transformation from television to OTT business.
Backed by Accel, Norwest Venture Partners, Premji Invest and Avataar Ventures, Amagi supports over 500 content brands, 800 playout chains and over 2,000 channel deliveries on its platform.