InMobi Joins Paytm In AI-Led Rejig, Likely To Axe Over 100 Jobs

SUMMARY

InMobi’s adoption of an AI-first approach will likely lead to job losses for 125 staff or around 5% of its current 2,500 workforce

As part of this exercise, the startup will phase out some of its legacy processes

InMobi’s net profit surged to INR 113.2 Cr in FY23 from INR 24.5 Cr in the previous fiscal year

Adtech unicorn InMobi is realigning its business operations across technology, organisational structure, people and skills by deploying artificial intelligence (AI), a shift that will likely witness job cuts in the startup and is expected to be completed by the end of this month.

InMobi’s adoption of an AI-first approach will likely lead to job losses for 125 staff or around 5% of its current 2,500 workforce.

The development was first reported by ET.

AI deployment will significantly impact customer interaction, communication, sales and overall business processes and as part of this exercise, the startup will phase out some of its legacy processes.

After nearly 17 years since its inception, InMobi recognises the necessity for a technological upgrade, considering the evolution in technologies like Gen AI. The company’s shift from a B2B-only approach to incorporating consumer-facing products has further underscored the need for a comprehensive overhaul, a person close to the company told Inc42.

InMobi, which was earlier planning for an IPO, postponed it due to market conditions. With the recent rebound in tech stocks, the company may relook at the possibility of an IPO within the next 12-15 months. Hence, it is trying to be future-ready and build more efficiency.

“As artificial intelligence (AI) has been sweeping the world, the market needs and the expectations that our customers – brands, agencies and developers – have of us, are changing rapidly. The products for addressing the market needs and customer expectations, the skillsets for delivering those products and the go-to-market strategies are going to be significantly different from those of the past decade,” the spokesperson said.

“The changes that we are bringing in at the organisation level are a proactive step for us to address the above needs, stay competitive and win globally in this decade and beyond,” the spokesperson added.

Founded by Naveen Tewari, Piyush Shah and Abhay Singhal in 2007, InMobi has grown to become a leading marketing and monetisation technology provider in India and worldwide. Headquartered in Singapore, the company has a presence in Bengaluru and San Francisco. It also has operations in New York, Chicago, Kansas City, Los Angeles, Delhi, Mumbai, Beijing, London, Dubai, and several other locations.

Last year, InMobi acquired San Francisco-based adtech company Quantcast Choice – a consent management platform (CMP) that helps publishers align with the rapidly evolving global privacy regulations.

InMobi’s net profit surged to INR 113.2 Cr in FY23 from INR 24.5 Cr in the previous fiscal year. The company’s revenue also saw a robust growth of 41.7%, reaching INR 589.57 Cr, compared to INR 415.93 Cr.

The AI revolution has taken the world of work by storm. Sectors such as IT, hospitality and banking are trying to upskill their workforce but the future of work has long been plagued by anxieties.

Most of the Indian startups have also started deploying AI which is resulting in retrenchment across various verticals.

For instance, last month, Paytm fired hundreds of employees citing the increasing usage of AI-led automation. The company has been adopting AI wherever possible to drive up efficiency, which resulted in layoffs.