India’s first unicorn startup InMobi which offers advertising solutions to businesses has reported a net loss of ₹54 crore during the financial year ended March 2019 (FY19), a 53% year-on-year (YoY) increase compared to the previous financial year, according to documents sourced from business information platform Tofler.
The Singapore-headquartered company has also reported a 20% YoY jump in revenues during the year which stood at ₹384.21 crore in FY19, compared to ₹317.81 crore in FY18.
The company’s total expenses for the fiscal were stood at ₹440.53 crore, a 25% YoY increased compared to ₹351.3 crore expenses reported in FY18.
InMobi had earlier reported a net profit of ₹11.87 crore in FY17, and ₹287 crore, which was largely generated from geographies such as the United States and China where it operates. However, the company failed to show any profits after its maiden net profit in FY17.
A competitive mobile advertising market, news of lay-offs, and a $950,000 fine imposed on InMobi by the US federal trade commission (FTC) for wrongfully tracking location of users, had setback the startup's growth after FY17. Since then InMobi has undertaken a series of business decisions to increase its revenue potential.
InMobi hired a new chief financial officer in starting of 2018 after its previous finance chief, Manish Dugar, left to join online healthcare platform Practo in May 2017. The startup then shifted focused to business-to-consumer (B2C) product Glance which offers personalized ad-free content into the lock screens of smartphones.
Mint reported in last May that Glance was in ‘incubation made’ during 2015 and 2016 as the company led many experiments to figure out a product fit. "In 2017, we set up Glance in its current form while 2017 and 2018 was a period of product and business development. During this period, we grew across four fronts—product, content, OEM (original equiment manufacturer) partnerships and team," Naven Tewari, chief executive of InMobi told Mint in an earlier interview.
Currently, InMobi has three core businesses under its brand: TruFactor a consumer data management tool for telcos, InMobi unified marketing cloud (UMC), and Glance.
Softbank-backed InMobi had last raised $45 million from PayPal co-founder Peter Thiel’s Mithril Capital to help expand its content platform Glance. To date, it has raised a little over $300 million from investors such as Softbank, Kleiner Perkins Caufield & Byers, Sherpalo Ventures and others. Globally the startup competes with big majors like Facebook and Google in the mobile advertising space, a market which is expected to touch $169 billion by 2023.
"InMobi has multiple subsidiaries globally. Our focus has been to grow our top line at a group level while being operationally profitable. Individual subsidiary financials do not accurately reflect the financials of InMobi at a group level. At a group level, InMobi has recorded double-digit growth in the past many years. We have been operationally profitable over the past three years"