Mumbai: True North has picked up a stake in initial public offering (IPO)-bound InMobi in a largely secondary transaction, three people familiar with the matter said. The investment is the first technology sector bet from the private equity firm's seventh fund.
“The investment firm has acquired stakes worth $50-60 million from some early investors, who came in through InMobi’s acquisitions, employee stock options and a few founder-owned entities,” the first person said.
“There was likely a small primary component, although the bulk of the round was a secondary share sale,” the second person said.
The third person said True North has picked up a 2-3% stake in the company—an unusual bet for the private equity firm, which typically acquires significant minority stakes in companies. Details of the valuation were not available as it was blended across different entities.
All three people spoke on condition of anonymity. True North declined to comment.
"As a policy, we don’t comment on rumours or speculation,” an InMobi spokesperson said.
Established in 2007 as mKhoj, InMobi transitioned in 2008 from an SMS-based search engine to mobile advertising. It was founded by Naveen Tewari, Mohit Saxena, Abhay Singhal, Amit Gupta and Piyush Shah. The company last raised $350 million from Varde Partners, Elham Credit Partners and SeaTown Holdings in December 2025 and is currently engaging with bankers for a $500 million initial public offering in India.
InMobi is building a new generation of advertising products designed for an internet increasingly shaped by artificial intelligence (AI) as the Bengaluru-based adtech firm looks to position itself for the next phase of growth ahead of the planned public listing, the company told Mint in June.
Advertising growth
The company makes money by helping advertisers buy digital ads and helping publishers monetize their websites and apps. InMobi operates across the advertising technology stack, earning a share of advertising spending that flows through its platforms while also offering software tools to brands, agencies and publishers.
While large platforms such as Google, Meta and OpenAI are building their own AI advertising products, InMobi is betting that its scale in the open internet—outside the biggest technology platforms—will help it capture a share of the next wave of advertising growth.
The company’s operating income rose to ₹470.91 crore in fiscal year 2025 (FY25) from ₹462.07 crore a year earlier. Its loss narrowed to ₹6.92 crore from ₹12.16 crore in FY24, according to filings sourced by Tofler from the ministry of corporate affairs.
True North traces its origins to 1999 when it was named India Value Fund Advisors. It was founded with the aim to back mid-sized, profitable and India-centric businesses. Its portfolio companies include ACT Fibernet, Biocon Biologics and NSE, according to its official website.
It clocked close to $2 billion in exits over the past three years by monetizing investments in Fedbank Financial Services, Niva Bupa, Biocon Biologics, Infinity Fincorp Solutions, Zydus Wellness and Home First Finance through IPOs and public market transactions. Mint reported that the investment firm sold its stake in Cloudnine Hospitals to Permira and Integrace to Warburg Pincus in private market deals over the past two months.
True North has raised seven separate investment funds with a combined total exceeding $3 billion since inception, including co-investments. Its seventh fund, which it began raising in 2021, is looking to deploy about $500 million.