Amagi Purchases Argoid AI in Order to Revolutionise Streaming with more Intelligent Solutions

Nitin Konde, Varun Bhardwaj

Dec 5, 2024 — 3 min read

Amagi Acquires Argoid AI to Revolutionize Streaming Solutions

The acquisition of Argoid AI, a business that specialises in artificial intelligence-driven recommendation engines and programming automation for over-the-top (OTT) platforms, has been announced by Amagi, a Bengaluru-based supplier of cloud-based SaaS technology for broadcast and connected TV (CTV). It is anticipated that this action will improve Amagi's AI capabilities, which is consistent with its goal of providing media firms with tools for intelligent content development, distribution, and monetisation.

The content recommendations and real-time programming selections made possible by Argoid AI's solutions help to boost audience engagement and streamline streaming platform operations. Amagi intends to enhance its product line, which includes Amagi NOW and Cloudport, by incorporating this technology to provide more individualised and effective content scheduling options.

The CEO and co-founder of Amagi, Baskar Subramanian, emphasised the significance of AI in changing the media and entertainment industry. In recent years, Amagi has made investments in AI and ML. According to him, the company is a firm believer in the revolutionary role that AI and ML will play in revolutionising the media and entertainment sector by generating increased revenue, improved efficiency, and an unparalleled viewing experience.

With this acquisition, Amagi will include Argoid's AI components into its cloud offerings, greatly increasing value for its clients, he continued. The two businesses' combined technological know-how will tackle important streaming industry issues like intelligent programming, viewer retention, and content discoverability.

Argoid AI's Founders to Join Amagi’s Team

Gokul Muralidharan, Soundararajan Velu, and Chackaravarthy E, the founders of Argoid AI, will become part of the Amagi team and contribute their experience to the company's continued development of AI-driven breakthroughs.

"This partnership allows Argoid AI to scale its AI-driven solutions, delivering even greater customer value," said Muralidharan, who was excited about the collaboration. He believed that by working together, the company would completely transform the way that content is created and shared in the digital age.

With the acquisition of Argoid AI, Amagi has taken the next step in using AI to meet the increasing demand for platforms that support Free Ad-Supported Streaming TV (FAST). With a solid clientele that includes DAZN, NBCUniversal, Lionsgate Studio, and A+E Networks UK, the company hopes to strengthen its place in the media-tech industry.

This acquisition comes after Amagi made a number of calculated steps to bolster its product line. The business purchased Tellyo, a UK-based platform for social sharing and real-time live cloud production, in November 2023. It acquired the US-based data platform for video providers, Streamwise, in 2022. Amagi's objective of strengthening its analytics and remote manufacturing capabilities was in line with both acquisitions.

Amagi Continues To Scale up its Revenue

Amagi has had strong development, as evidenced by its operational revenue, which increased from INR 680 crore in FY23 to INR 879.15 crore in FY24. Even though the company's losses in FY24 decreased by 23.7% to INR 245 crore, it is still committed to growing internationally.

Amagi's biggest market is still the US, which accounted for 67.3% of company sales in the most recent fiscal year. With sales rising by 31.1% to INR 115.5 crore, the UK contributed 13.1%. But fewer than 1% of its overall revenue came from India, which represents a 54.3% year-over-year drop to INR 8 crore. A significant rise of 78.9% was seen in other regions, which contributed INR 164.1 crore.

Funding rounds, such as a $100 million investment in November 2023 that valued the company at $1.4 billion, have supported Amagi's financial growth. With a valuation of more than $1 billion, it was also recognised as a media-tech unicorn by earlier funding attempts in 2022.