Amagi to Double India Business as FAST Gains Momentum

India's cloud-based video broadcasting and distribution platform Amagi is expected to double its Indian business in the next three years, driven by the growth of free ad-supported streaming television (FAST), according to one of its co-founders.

Srinivasan KA, co-founder and chief revenue officer at Amagi, told Mint that India has been one of the fastest-growing markets for FAST globally. "India has been a very good place for us because we have taken off with a bang," he said.

Amagi, valued over $1 billion and planning an initial public offering (IPO), is primarily focused on broadcast networks and content owners, providing them with total control over monetization, launch, and distribution of their content across various platforms including live TV, cable TV, on-demand, and over-the-top (OTT) streaming. The company's products also cater to FAST services, where viewers can watch television channels for free without ads.

In India, 70% of Amagi's revenue comes from the country, with Asia and Latin America accounting for another 10%. Europe accounts for just 20%, making it a higher-growth region compared to North America. The company expects a single-digit growth rate globally but expects double-digit growth in key markets like Germany, the UK, Brazil, Mexico, and Japan.

India's media market is poised to grow rapidly at a compound annual growth rate (CAGR) of 8.3%, surpassing the global growth rate of 4.6%. This presents an exciting opportunity for Amagi to expand its offerings in FAST services, leveraging the growing popularity of connected TVs (CTVs) and rising smartphone adoption.

Subramanian pointed out that India already sees over 200 FAST channels available on popular CTV platforms like Samsung TV Plus, Amazon Mini, Reliance Industries' JioHotstar, Android, LG, TCL, and Xiaomi.

However, he said the growth of FAST will be driven by a surge in CTVs. "The country's forecasted CTV household base is projected to exceed 65 million in 2025, with more than 30% of Indian households being equipped with smart TVs."

Growth drivers:

• CTVs: With growing smart TV penetration and mobile device adoption driving up demand for entertainment services
• Advertising: As brands start monetizing digital content offerings
• Sports: Live sports transmission will continue to be a growth driver for the platform

Amagi is likely to make acquisitions in various sectors, primarily looking at businesses offering live sports broadcasting, advertising technologies, and media preparation solutions. The company plans on leveraging AI technologies as well but prefers not too deep into cutting-edge emerging tools.

Nadathur Holdings joined Amagi early in its growth journey during the seed funding round while Premji Invest has been an active participant since the series C round.