InMobi Prepares for IPO with Fresh Capital Injection
InMobi, India’s pioneering adtech unicorn backed by SoftBank, has secured $100 million in debt funding as it gears up for its much-anticipated initial public offering (IPO). The funding round marks a significant step for the Singapore-headquartered company as it looks to bolster its artificial intelligence (AI) capabilities and explore potential AI-focused acquisitions.
Strategic Use of New Funds
The fresh capital will be strategically deployed to enhance InMobi’s AI stack, a move designed to strengthen its competitive edge in the rapidly evolving adtech landscape. The company plans to leverage these funds to advance its AI technologies, which are crucial for optimizing advertising solutions and expanding its technological capabilities.
InMobi’s focus on AI aligns with its broader strategy of maintaining leadership in mobile advertising and content monetization. The company aims to harness the power of AI to refine its advertising solutions, making them more efficient and effective for its global client base.
Upcoming IPO Plans
InMobi, which was founded in 2007, is preparing to file draft papers with the Securities and Exchange Board of India (SEBI) for the IPO of its profitable adtech arm, InMobi Advertising. The company is expected to submit its filing in late 2024 or early 2025, with a potential listing on Indian stock exchanges anticipated in the second half of fiscal year 2025-26.
The IPO will mark a significant milestone for InMobi, which has been a key player in the mobile advertising and content monetization sectors. The company is also planning to list its consumer technology business, Glance, separately. This move reflects InMobi’s strategy to unlock value in its diverse business segments.
InMobi’s Business Model and Operations
InMobi Advertising is known for providing marketing and monetization technology to app developers and consumer businesses worldwide. The company’s services enable third-party businesses to market their products on various platforms, charging fees for these services.
In addition to its adtech business, InMobi operates Glance, a lock screen-based content discovery platform for Android devices. Glance provides advertisements and commerce opportunities directly on users’ lock screens. The platform has achieved significant reach, with approximately 450 million smartphones in India, Southeast Asia, and Japan utilizing Glance.
Expansion and Growth for Glance
Glance is on track to hit the one billion-user mark in the next three to four years, fueled by its expansion into the U.S. market. InMobi anticipates that high-margin markets like the U.S. and Japan will contribute significantly to Glance’s profitability. The revenue generated from Glance’s advertising services further supports InMobi’s growth strategy.
Funding and Ownership of Glance
Glance has a history of significant funding rounds. In September 2019, Glance raised $45 million from U.S. venture firm Mithril Capital. This was followed by a $145 million funding round in December 2020 led by Mithril, Google, and others, which valued Glance at over $1 billion and secured its unicorn status. In August 2021, Jio Platforms also invested approximately $200 million in Glance.
Currently, InMobi holds around 60% of Glance’s equity, with the remaining shares distributed among Mithril Capital, Google, and Jio Platforms. Glance operates as an unconsolidated subsidiary of InMobi, with a separate balance sheet from its parent company.
Looking Ahead
InMobi’s strategic focus on AI and its preparation for dual IPOs reflect its ambition to lead the adtech and consumer technology markets. The company’s efforts to enhance its AI capabilities and expand its product offerings position it well for future growth and market leadership.
As InMobi moves forward with its IPO plans and continues to innovate in the adtech space, it remains a key player to watch in the global technology landscape.
