Ahead Of IPO, InMobi Nets $100 Mn Debt To Boost Its AI Stack

Adtech startup InMobi has secured $100 Mn (around INR 840 Cr) in debt funding from Mars Growth Capital, a joint venture between MUFG and Liquidity Group, as India’s first unicorn prepares for its initial public offering (IPO).

The SoftBank-backed startup plans to deploy the fresh capital towards strengthening its artificial intelligence (AI) capabilities and potential AI-focused acquisitions.

Founded in 2007 by Naveen Tewari, Piyush Shah, Mohit Saxena and Abhay Singhal, InMobi provides marketing and monetisation technology to app developers worldwide.

In 2019, it diversified from its core adtech business with Glance, an AI-based unicorn startup that operates an Android lockscreen platform.

InMobi’s subsidiary, Roposo, is also transitioning from an influencer-led commerce model to a broader social commerce platform. The new model will allow users to set up their own stores and leverage GenAI tools to sell products online.

Commenting on the funding, InMobi CEO Tewari said, “AI is the bedrock of both InMobi’s consumer and enterprise businesses, and we are using it to power the revolutionary lock screen experiences and InMobi Advertising’s platforms. We are reimagining how ads can be made truly native by driving superior engagement and outcomes for consumers, advertisers and publishers.”

“We’re pleased to have the confidence and funding from MARS Growth Capital to further accelerate our growth trajectory,” Tewari added.

The funding comes at a time when InMobi is gearing up for its public listing. The 17-year old company plans to file its draft red herring prospectus (DRHP) with market regulator SEBI this year or next year for a public listing in 2025-26.

It was earlier reported that InMobi was eyeing a $10 Bn valuation for its IPO and expects to clock a revenue of $700 Mn by the end of March. It is pertinent to note that InMobi earns 70-80% of its revenue from North America.

In the run up to its IPO, InMobi is planning to shift its domicile back to India from Singapore.

According to Inc42 data, InMobi has raised $320.1 Mn in funding till date and counts Sherpalo Ventures, SoftBank Vision Fund and Kleiner Perkins among its investors.

It competes with giants like Google, Meta, Yahoo in the adtech market. In India, it competes with Dailyhunt parent VerSe and Crackle among others.

The Indian ad tech market is projected to grow at a CAGR of 25.7% from 2024 to 2030, as per a report by Grand View Research.