Amagi acquires Argoid AI to transform streaming with smarter solutions

Amagi, the Bengaluru-based provider of cloud-based SaaS technology for broadcast and connected TV (CTV), has announced the acquisition of Argoid AI, a company specialising in artificial intelligence-driven recommendation engines and programming automation for OTT platforms. This move is expected to enhance Amagi’s AI capabilities, aligning with its strategy to empower media companies with intelligent content planning, distribution, and monetisation tools.

Argoid AI’s solutions offer content recommendations and facilitate real-time programming decisions, which help to increase viewer engagement and optimise operations for streaming platforms. By integrating this technology, Amagi plans to strengthen its product suite, including its Amagi NOW and Cloudport offerings, delivering more personalised and efficient content scheduling solutions.

Baskar Subramanian, co-founder and CEO of Amagi, highlighted the importance of AI in reshaping the media and entertainment landscape. “We have been investing in AI/ML over the last couple of years. We strongly believe in AI/ML’s pivotal role in transforming the media and entertainment industry, creating efficiencies, enhanced monetisation, and a superlative viewer experience,” he said.

He further added, “With this acquisition, Amagi will integrate Argoid’s AI components into its cloud solutions, significantly enhancing value for our customers. The combined tech expertise of both companies will address key challenges in the streaming industry, such as content discoverability, viewer retention, and intelligent programming.”

Argoid AI’s founders—Gokul Muralidharan, Soundararajan Velu, and Chackaravarthy E—will join the Amagi team, bringing their expertise to the company’s ongoing development of AI-driven innovations.

Muralidharan expressed enthusiasm for the partnership, stating: “This partnership allows us to scale our AI-driven solutions, delivering even greater customer value. Together, we will revolutionise how content is programmed and distributed in the digital era.”

Amagi’s acquisition of Argoid AI marks its latest step in leveraging AI to cater to the growing demand for Free Ad-Supported Streaming TV (FAST) platforms. With a strong client portfolio that includes A+E Networks UK, NBCUniversal, Lionsgate Studio, and DAZN, the company aims to enhance its position in the media-tech sector.

This acquisition follows a series of strategic moves by Amagi to strengthen its offerings. In November 2023, the company acquired Tellyo, a UK-based platform for real-time live cloud production and social sharing. In 2022, it purchased Streamwise, a US-based data platform for content distributors. Both acquisitions aligned with Amagi’s goal of bolstering its analytics and remote production capabilities.

Amagi has seen robust growth, with operating revenue rising to INR 879.15 crore during FY24, up from INR 680 crore in FY23. Despite a 23.7% reduction in losses to INR 245 crore in FY24, the company remains focused on expanding its global footprint.

The United States remains Amagi’s largest market, accounting for 67.3% of its revenue, or INR 591.5 crore, during the last fiscal year. The United Kingdom contributed 13.1%, with revenue increasing by 31.1% to INR 115.5 crore. However, India accounted for less than 1% of its total revenue, reflecting a 54.3% year-on-year decline to INR 8 crore. Other regions saw significant growth of 78.9%, contributing INR 164.1 crore.

Amagi’s financial momentum has been bolstered by funding rounds, including a $100 million investment in November 2023 that valued the company at $1.4 billion. Earlier funding efforts in 2022 also established it as a media-tech unicorn, with a valuation exceeding $1 billion.

The company’s focus on AI-driven innovation and global expansion positions it as a key player in the evolving media and entertainment industry. Its pivot in 2018 from local television advertising solutions to a SaaS-based monetisation platform for TV networks and content owners has proven successful.

Amagi’s continued growth and strategic acquisitions have fuelled speculation about a potential IPO. While the company has hinted at public listing plans since mid-2022, no concrete timeline has been confirmed.