InMobi, which offers digital advertising products, has decided to skip increments for the next financial year and go in for only “need-based”, selective hiring, according to two sources aware of the development.
This was communicated to employees by InMobi CEO Naveen Tewari at a townhall meeting on Wednesday, which was attended by both Glance and InMobi employees, sources added. InMobi-owned Glance is a mobile service that offers news and viral content on smartphone lock screens.
Tewari also said that all employees should start reporting to office at least thrice a week from January 2023. Earlier, InMobi and Glance had allowed employees to work from home, providing a flexible hybrid working model, but this will stand revoked starting from January 2023, sources said.
The sources added the company’s planned $1-billion initial public offering (IPO) in Nasdaq at a valuation of $12-15 billion may get delayed due to the fall in tech stocks across both domestic and international markets.
Company officials could not be reached for comments.
Bengaluru-based InMobi was the first-ever startup out of the country to reach the coveted billion-dollar valuation mark in a funding round led by Japanese investor SoftBank.
Harvard Business School alumnus Tewari co-founded InMobi in 2007 along with Mohit Saxena, Amit Gupta and Abhay Singhal. Prior to this, Tewari was a consultant at McKinsey & Co. To date, InMobi has raised around $320 million in private market funding from prominent investors such as Lightbox and Tennenbaum Capital Partners, SoftBank and others.
For the fiscal year ended March 31, 2020 (FY20), InMobi reported a revenue of Rs 431.68 crore, a 13% year-on-year growth compared to Rs 386.31 crore in FY19. It also reported a net loss of Rs 76.66 crore in FY20, which widened from around Rs 54.21 crore in FY19.
InMobi-owned mobile content startup Glance has also separately raised around $390 million in privacy capital from large investors such as Google, Jio, Mithril Capital Management and others. Glance also earned unicorn status in a funding round in December 2020. Singapore-headquartered Glance claims that its lock screen content service is present in over 400 million devices across markets in Asia.
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In the last few quarters, tech startups have been looking to reduce their cash burn as capital becomes costlier to access, due to soaring inflation that has pushed interest rates higher across the board.
The funding crunch for startups is also a global aspect, especially with VCs and PEs turning wary about funding new startups at lofty valuations, which experts say is the reason for the ongoing funding slowdown and the consequent round of layoffs. So far in 2022, new-age startups in India have axed close to 17,000 jobs, with predictions that the number would increase further by the end of this year.