Media technology provider Amagi has scored fresh funding, announcing Thursday that it raised over $100 million from equity firm General Atlantic, with plans to invest in AI-driven tools particularly focused on the free ad-supported streaming TV ecosystem.
The General Atlantic investment includes $80 million in primary capital and is expected to close after receipt of regulatory approval.
According to the company, the investment brings Amagi’s valuation to $1.4 billion – seven months after the startup achieved unicorn status (or $1 billion valuation) in March. That followed a $95 million investment from venture capitalists Accel, Norwest Venture Partners and Avataar Ventures.
Amagi counts major media companies among its clients, providing technology products for the creation, distribution and monetization of live, linear and on-demand across the TV ecosystem including cable, OTT and CTV-led FAST platforms.
Its customers include Warner Bros. Discovery, NBCUniversal, Fox Networks, ABS-CBN, A+E Networks UK, beIN Sports, CuriousityStream, Cinedigm, Gusto TV, Tastemade, and Tegna among others.
Earlier this month music video network Vevo disclosed teaming up with Amagi. Vevo plans to tap the vendor’s cloud-based infrastructure and utilize tools to ensure quality streaming and video ad delivery for Vevo’s linear FAST channels across CTV platforms as it expands globally.
In announcing the new investment Amagi cited continued growth and crossing the $100 million annual recurring revenue (ARR) threshold following a record Q2. The company said it plans to use the latest funding to strengthen support infrastructure for clients and also invest in AI-powered personalization, advertising and live streaming products, especially focused on the FAST ecosystem.
In a statement, Shantanu Rastogi, managing director and head of India at General Atlantic, pointed to Amagi’s early moves in the FAST space and its focus on cloud-based technology.
“Amagi has demonstrated a consistent ability to anticipate key trends, acting as an early mover in the rise of free ad-supported streaming TV. The company has also championed the use of cloud technology to optimize results for their broadcast and streaming partners globally,” said Shantanu Rastogi, Managing Director and Head of India at General Atlantic. “We look forward to partnering with the Amagi leadership team to further fast track their growth as they continue to shape the future of cloud-based broadcast.”
Amagi has said its cloud-native tools have helped global customers automate workflows, save costs up to 40-50% and achieve higher returns on investment. Last month the company expanded its international presence with the addition of a sales and customer support team in South Korea. Amagi has also expanded into Germany and Australia.
Investing resources in tools to support the FAST ecosystem comes at a time when use of free ad-supported TV service is on the rise in the U.S. According to Kantar data, FAST, along with AVOD, continued to be the fastest growing sectors in the streaming market in the third quarter. The firm found FAST grew by one percentage point in the quarter to reach 28% household penetration.
Speaking with Fierce Video at the IBC industry trade show this fall, Amagi co-founder and chief revenue officer Srinivasan KA explained how the company is helping customers solve challenges in the FAST space, which in his view are more about business than technical problems. For example, optimizing ad-insertion for FASTs to improve render or fill-rate – which helps maximize revenue for clients and improve the user experience.
At the time, he noted that FAST was becoming an increasingly prominent part of the Amagi business, with one unified platform that caters to dual sides of broadcast players’ needs and the FAST ecosystem, rather than only serving either-or.
“FAST is certainly the fastest growing part of the business, and that is growing larger and larger,” KA said in September. “We see this as a common solution, and not necessarily one or the other.”