Adtech-to-consumer-tech firm InMobi is buying back a majority of early investor SoftBank’s stake after the company and its founders raised $350 million in debt, according to people familiar with the matter. The transaction will lift the founders’ combined holding—-including CEO Naveen Tewari, Abhay Singhal, Mohit Saxena and Piyush Shah–to more than 60% as they repurchase a 25%–30% stake from SoftBank for about $250 million.
With this, SoftBank’s holding in the company would reduce sharply from over 36% to less than 7%, while the founders and employees holding together will reach more than 80%. The company is consolidating ownership as it prepares for a public listing next year.
What will happen to SoftBank’s stake?
SoftBank’s stake will shrink sharply, from more than 36% to under 7%, while founders and employees together will hold over 80% of the company. InMobi is consolidating ownership as it gears up for an IPO next year.
To fund the buyback, the founders have pledged shares to secure $350 million in debt from private credit funds including Värde Partners, SeaTown Holdings and Elham Credit Partners. About $250 million will be used to acquire SoftBank’s stake, with the remainder earmarked for operations.
What’s the proposed valuation of InMobi?
The deal values InMobi at roughly $1 billion, essentially its valuation in 2011. SoftBank, which invested $200 million–$220 million, gets a clean exit from a long-held position, while the founders regain tighter control ahead of the listing.
The increased promoter ownership will rank among the highest for an Indian new-age tech company and gives InMobi’s leadership greater flexibility on strategy, governance and future growth, including M&A and new product bets. For comparison, ed-tech firm PhysicsWallah listed with promoter holdings of 80.62%, which dropped to about 72% post-IPO.
In September last year, InMobi raised $100 million in debt from MARS Growth Capital, a MUFG-Liquidity Group joint venture, to bolster artificial-intelligence development and support potential AI-focused acquisitions.
InMobi operates two core businesses: Glance, an AI-driven content-discovery platform that delivers personalised entertainment and information to smartphone lock screens; and InMobi Advertising, which offers data-led media solutions and targeted advertising for brands.