SaaS unicorn Amagi posts Rs 680 Cr revenue in FY23


Amagi, a cloud-based media SaaS technology company tripled its revenue over the last two fiscal years soaring from Rs 219 crore in FY21 to Rs 680 crore in FY23. However, the company posted substantial losses in FY23 and FY22 after registering profits in FY21.

Amagi’s revenue from operations grew 57.77% to Rs 680 crore in the previous fiscal ending March 2023 from Rs 431 crore in FY22, its consolidated financial statements sourced from the Registrar of Companies show.

Financials FY23

FY22 FY23










Amount in ₹ Cr

Founded by Baskar Subramanian, Srinivasan KA, and Srividhya Srinivasan, Amagi enables content owners to launch, distribute, and monetize live linear channels on free-ad-supported television and video services platforms through a suite of solutions.

The group majorly derives its revenue from its products Thunderstorm (a server-side ad insertion platform for OTT content publishers) and Cloudport (a broadcast-grade channel payout platform for TV and OTT).

The US was the largest market for Amagi, contributing 71% of the total operating revenue while the UK and India shares stood at 12.9% and 2.6% respectively in the last fiscal year.

According to the website, Amagi has more than 700 content brands with 50b+ ad opportunities. The firm also has a presence across 40 countries including the USA, UK, Korea, Canada, France, India, Singapore, Australia and others.

Moving towards the cost side, its employee benefits accounted for 51% of the total expenditure. This cost increased by 22% to Rs 438 crore in FY23. We have excluded the non-cash content of ESOP and SARs of Rs 161 crore while calculating employee benefits during FY23.

Expenses Breakdown

Total ₹ 609 Cr
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Total ₹ 855 Cr
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  • Employee benefit expense
  • Communication costs
  • Subscriptions membership fees
  • Advertising promotional expenses
  • Legal professional charges
  • Travelling conveyance
  • Training recruitment expenses
  • Others

Caveat: The company spent Rs 38 crore and Rs 224 crore on ESOP (which were settled in cash) during FY23 and FY22 respectively.

Its communication cost which includes servers and other information technology grew 55.6% in FY23. The subscription fees, advertising, legal, training, and other overheads took the total cost up by 40.39% to Rs 855 crore in FY23 from Rs 609 crore in FY22.

Caveat 2: We have excluded the cost impact of CCPS (Compulsory convertible preference shares), OCPS (Optionally convertible preference shares) and fair value of equity shares amounting to Rs 763 crore during FY22 due to their non-cash nature.

With the decent growth during the previous fiscal, Amagi’s losses remained flat at Rs 175 crore in FY23 as compared to Rs 178 crore in FY22. Its ROCE and EBITDA margins stood at -23% and 23% respectively. On a unit level, it spent Rs 1.26 to earn a rupee in FY23.


FY22 FY23
EBITDA Margin -39% -23%
Expense/₹ of Op Revenue ₹1.41 ₹1.26
ROCE -45% -23%

Amagi turned unicorn after raising $95 million in a new round led by existing investor Accel. The firm raked in another $110 million in November last year at a valuation of $1.45 billion. As per media reports, the company was in talks to raise $250 million in a new round.

The softening in broadcast markets worldwide might be putting some pressure on that segment, a key one for Amagi. Even as the OTT segment is also evolving fast with competition possibly heating up. Its high technology costs indicate the extent to which the firm tries to integrate its solutions with clients, which is a high upfront investment, but sticky approach to ensuring loyal business in the sector. But a weak advertising market will be a drag on margins, and that remains the biggest challenge for Amagi to overcome.

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