InMobi, the SoftBank-backed adtech unicorn, is preparing to file its Draft Red Herring Prospectus (DRHP) within the next two to three months, targeting an initial public offering (IPO) exceeding $1 billion. The company aims to go public by October 2025, seeking a valuation between $8 billion and $10 billion.
IPO Structure and Valuation
The upcoming IPO will consist of both a fresh issue of shares and an Offer for Sale (OFS). InMobi’s valuation will factor in its core business operations along with its approximately 60% stake in Glance, an AI-powered lock-screen content platform launched in 2019. The IPO could position InMobi among the largest software startup listings in India, following significant IPOs like Paytm and Swiggy in recent years.
Company Background and Strategic Initiatives
Founded in 2007 by Naveen Tewari, Piyush Shah, Mohit Saxena, and Abhay Singhal, InMobi has established itself as a leader in contextual marketing and monetization solutions for brands, advertisers, and publishers. The company is increasingly investing in generative AI, leveraging Google's Gemini basic architecture to strengthen its AI capabilities.
InMobi recently secured a $100 million loan to accelerate its AI initiatives and drive growth. In a strategic move, the company is also relocating its headquarters from Singapore back to India to align operations with local regulatory frameworks ahead of its IPO.
Financial Performance
InMobi’s revenue is projected to grow from ₹2,330 crore ($281 million) in FY23 to an estimated ₹5,810 crore ($700 million) by March 2025. However, despite revenue growth, the company reported a decline in profits from ₹415 crore ($50 million) in FY22 to ₹340 crore ($41 million) in FY23. North America continues to be a key market, contributing 70–80% of its total revenue.
Our Opinion on the News
InMobi’s upcoming IPO reflects the increasing influence of Indian tech startups on the global stage. The inclusion of Glance in its valuation and the strategic focus on AI-driven innovations position the company favorably for future growth. However, the recent decline in profitability signals the need for prudent financial management to maintain investor confidence. The decision to shift its headquarters to India could enhance its regulatory compliance and improve local market perception, making it an attractive prospect for domestic and international investors alike.