General Atlantic Invests In SaaS Unicorn Amagi, Pumps In $79 Mn

Media-focused SaaS startup Amagi has raised $79 Mn in funding from private equity (PE) firm General Atlantic. The deal will also see the PE major acquire stakes worth $26.6 Mn from existing investors, pegging the entire transaction at $105 Mn.

Amagi will use the funding to undertake corporate restructuring activities to finance the growth and expansion. 

The startup made the disclosure in a regulatory filing before the Registrar of Companies (RoC). According to documents accessed by Inc42, the deal has a primary and a secondary component to it which will enable Amagi to raise the money in two tranches.

The board at Amagi passed a special resolution to issue 3,35,854 Series F compulsorily convertible preference shares (CCPS) at an issue price of INR 19,505.5 per share, totalling INR INR 655 Cr ($79.2 Mn). 

“…it is proposed to issue, offer and subsequently allot 335,854 series F compulsorily convertible preference shares having a face value of INR 100/- each and a premium of INR 19,405.54 each aggregating to INR 6,551,013,631.16 on preferential allotment,” said the filings.

Under the secondary transaction, General Atlantic will acquire 1,12,374 equity and preference shares from an existing investor, which are currently valued at around INR 220 Cr ($26.6 Mn). The two transactions together bring up the cumulative total to well over $105 Mn.

Post the transaction, General Atlantic will hold an 8% stake in the Baskar Subramanian-led startup.

Founded in 2008 by Subramanian, Srinivasan KA and Srividhya Srinivasan, Amagi offers a cloud suite for clients to create, distribute and monetise content. It also offers broadcast and targeted advertising solutions for broadcast and streaming TV platforms. 

The new fundraise comes months after Amagi turned unicorn after raising $95 Mn in a funding round led by Accel and other existing investors. Right after that, in April, Amagi also reportedly bought back equity shares worth INR 91.Cr from its founders and employees. 

Prior to that, in September 2021, Amagi had also raised $100 Mn from Accel, Avataar Ventures, and other marquee investors. 

Amagi claims to support more than 650 content brands and over 800 playout chains on its platform across 40 countries globally.

In FY21, Amagi’s revenue from operations more than doubled to INR 219.3 Cr, compared to INR 96.1 Cr in the previous fiscal year. It reported a net profit of INR 20.7 Cr in FY21, up from INR 18.7 Cr in FY20.

This comes close on the heels of another SaaS unicorn Icertis raising $150 Mn from US-based Silicon Valley Bank. Cybersecurity startup BluSapphire Cyber Systems also bagged $9.2 Mn in a funding round led by Barings Private Equity India.

This is emblematic of the larger SaaS ecosystem that continues to flourish in the country. A majority of these SaaS startups, just like Amagi, largely cater to a global clientele and create these products out of India. This was also reflected in a recent report by Bain & Company that said that first-generation Indian SaaS-based startups could potentially capture an 8-9% share of the global SaaS market and could reach $30 Bn revenue mark by 2025.

The development was first reported by Entrackr.

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