Amagi eyes 50% y-o-y growth after business model restructuring

Amagi eyes 50% y-o-y growth after business model restructuring

Deepakjit Singh’s bold play has paid off for the company

Deepakjit Singh

MUMBAI: Deepakjit Singh’s reign as CEO Amagi has seen the cloud-broadcast technology company undergo a period of business model restructuring. The high-risk strategy seems to have paid off, vindicating the vision of its new leader. Amagi adopted a tech-share model in favour of a cost-based, which had been the norm until then.

Deepakjit describes the process as removing the conflict in the business. Amagi negotiated a new deal with its partners wherein they pay the former a share of the revenues instead of an upfront fee. According to industry sources, Amagi’s percentage share stands in the region of 20 per cent.

“If my team and the channel's ad sales team both are selling ads, there is a conflict. So everybody loses in some shape or form,” he points out.

The resounding success of the company’s bold decision to alter its business model is centred on three factors. The company didn’t lose any clients, there was no dip in revenues and the balance sheet showed profits.

Riding on the back of this win, Deepakjit now eyes a 50 percent year-on-year growth for the next four years. In the last 10 months, Amagi has acquired 28 new customers across the globe. Taking the Indian business model global is the ethos behind the company’s ambitious expansion plans.

Amagi (http://www.indiantelevision.com/keyword/amagi-2) has identified a couple of trends that are bound to benefit them going forward.

"We are looking at 2-3 things for the next 24 months. One is, as soon as the localisation and target marketing becomes more known to people, the market will boom because globally that’s what is happening. Second is the change that will happen from the cost model to the revenue model. And as CTOs and purchase departments get used to that, there is going to come a tipping point where the market will change dramatically,” the veteran executive highlights.

According to Deepakjit, his biggest challenge in the next 24 months is bound to be his company’s ability to meet the tremendous demand that’s going to arise in all the markets they operate in.

Amagi has recently ventured into the US, parts of Europe, Indonesia, and the Philippines. Back home, the company has hired ad sales professionals in tier 2 and 3 cities for selling ad spots as it feels there is a definite growth opportunity in these regions.

Amagi aims to go full steam in the next 24 months. So, what will be the parameters for success at the end of this two-year period?

“I will make it a brand with a global presence and get a reasonable cheer at the global market,” he concludes.