Amagi Media Labs, a Bangalore-based technology and media startup that facilitates geographic targeting of television advertisements, has raised Rs 30 crore ($5.19 million) in funding from Mayfield Fund, a global venture capital firm with $2.7 billion under management. Existing investors also participated in the round. As part of the funding, Vikram Godse from Mayfield India Advisors will join the board of the company, according to Iamwire.
While it is not clear where the funds will be deployed, the company was looking to raise about Rs 50 crore in its second round of funding since July last year. “The funds will be used for ramping up Amagi’s revenues by scaling up its ad inventory purchase from TV networks and for expanding its reach across all the Hindi-speaking markets,” Baskar Subramanian, co-founder, Amagi, had told VCCircle at the time. Though we have contacted the firm for more details, it is yet to come back to us with more information.
The startup was founded by Subramanian, Srinivasan KA and Srividhya Srinivasan in February 2008. Prior to Amagi, they had also co-founded another technology company, Impulsesoft Pvt Ltd., a Bluetooth audio solutions provider. Impulsesoft was later acquired by SiRF, a Nasdaq-listed semiconductor firm based in the US. After the acquisition, the trio held key positions at SiRF, before ushering in Amagi.
Amagi facilitates geographic targeting of television advertisements. Simply put, if viewers in Mumbai and Delhi are watching the same TV channel, they will still see different ads, depending on their geographical location. For example, if it is a Magicbricks.com ad, the Mumbai viewer will see the ad for properties in Mumbai, while the Delhi guy will see the same ad for properties in Delhi, because of the technology developed by the company.
The startup generates revenues from selling ads space, which is then shared with its partners (the broadcasters). While the revenue-sharing pattern has not been disclosed, the company bags the lion’s share. “Before Amagi, targeted advertising was only time-slot based; we added location to the mix. We provide regional brands with an opportunity to advertise on a national platform. The national brands already have that,” Srinivasan earlier told Techcircle.in.
The company had so far raised Rs 37 crore. Last August, it had raised Rs 25 crore from the Nadathur Group, an investment firm founded by Infosys’ co-founder NS Raghavan. Nadathur has invested in all its three rounds of fundraising.
In terms of competition, Rediff had in 2010 acquired a company called Vubites, a local TV advertising firm founded by Rediff chairman and CEO Ajit Balakrishnan in his individual capacity. Rediff entered the local TV-advertisement market post this acquisition.
(Edited by Joby Puthuparampil Johnson)