InMobi, which provides mobile advertising network software, is in discussions to raise $100–150 million in a pre-IPO funding round as it looks to realign its cap table ahead of a public listing expected in FY27, according to three people familiar with the matter.
The company is working closely with its IPO bankers to tap growth-stage investment firms, the people cited above said. “The talks are still in early stages and calls with several investors have been held,” one of them said.
A second person added that the round is expected to help establish the valuation benchmark that InMobi is targeting for its IPO.
“Its IPO bankers may only lead this process since it’s a fairly well-known company and does not need separate bankers for private funding,” a third person said, adding that the process of appointing bankers is also running in parallel.
The fundraise comes as InMobi navigates the process of shifting its domicile to India from Singapore. The company has raised more than $700 million across debt and equity over the years, with investors including Kleiner Perkins and Sherpalo Ventures.
All three people spoke on condition of anonymity. InMobi did not respond to Mint’s requests for comment.
Recent capital reset
The development comes weeks after InMobi raised $350 million in new financing from Varde Partners, Elham Credit Partners and SeaTown Holdings, according to a report by The Economic Times.
The report said most of the proceeds would be used to fund a share buyback from existing investors, primarily SoftBank and other private equity shareholders.
Following the transaction, SoftBank’s stake fell to about 5–7% from around 35%. The deal was finalised at a valuation of under $1 billion.
Core adtech business
Founded in 2007 by Naveen Tewari, InMobi offers mobile display advertising, app-install campaigns and other adtech solutions, increasingly leveraging artificial intelligence to serve advertisers.
The company works with marketers and publishers, helping them connect with target audiences using data-driven analytics and providing tools for monetization, consent management and user engagement.
In 2019, InMobi diversified beyond adtech with the launch of Glance, a lock-screen content discovery platform preloaded on smartphones. Glance reached 450 million smartphones across India, Southeast Asia and Japan within five years and aims to touch one billion lock screens by 2028, Tewari told Mint last year.
Glance, backed by Google and Jio Platforms, achieved unicorn status around five years ago and is also eyeing a separate public listing—although after InMobi’s IPO.
InMobi earns a fee when it arranges advertisements on Glance, similar to other third-party apps. Glance remains an unconsolidated subsidiary, meaning its balance sheet is separate from InMobi’s, though the parent benefits as the platform scales.
The core adtech business, where SoftBank is an investor, has been profitable since 2016, though margins have fluctuated, partly due to the pandemic.
Other venture-backed adtech companies include Clevertap, and Moengage. Customer engagement platform MoEngage earlier this month raised an additional $180 million as part of its Series F funding round led by ChrysCapital and Dragon Funds, taking the total to $280 million in the round.
In July this year, Mint reported that Clevertap is grappling with integration challenges after a three-year-old acquisition of US-based Leanplum, triggering layoffs and top deck exits.
Financial snapshot
In FY24, InMobi reported about $600 million in total revenue, with its core adtech business contributing over $300 million. Glance posted revenue of ₹614 crore (around $73 million). Media reports had earlier said the company was targeting $700 million in revenue by FY25.
In FY23, InMobi reported revenue of $281 million, while profit declined to $41 million from $50 million in FY22, Mint had reported earlier.
India’s advertising economy is set for rapid expansion over the next five years, with digital firmly at the centre, according to consultancy firm Bain & Co. The firm estimates that India’s overall advertising market stood at $16–18 billion in 2024 and is expected to grow at 10–15% annually over the next 4 years.
Within this, digital already contributes 50–60% of total ad spends and is expected to grow faster, at ~15% CAGR, to $17–19 billion by 2029, the consultancy firm said in a report earlier this year, adding that India remains among the fastest-growing ad markets in Asia-Pacific and globally.