InMobi, one among India’s first tech unicorns from the country’s early startup days , is now setting its sights on a major milestone. The company is reportedly targeting a $10 billion valuation in an initial public offering (IPO) planned for next year, according to a report from TechCrunch. This potential listing could be a landmark moment, marking one of the biggest IPOs ever by a domestic software startup in the country.
Founded in 2007, InMobi holds the distinction of being the first Indian startup to achieve unicorn status (valuation exceeding $1 billion), achieving the status four years after its inception. However, the company’s journey hasn’t been without its obstacles. Initially, InMobi faced an uphill battle against established tech giants like Google and Meta, who dominated the digital advertising landscape. Despite these challenges, InMobi managed to carve out a niche for itself by offering an advertising platform that integrated various technologies.
Today, InMobi’s platform caters to a clientele spanning tens of thousands of app partnerships across 50 countries. It also boasts an impressive roster of clients including household names like Mastercard, Samsung, Vodafone, and renowned brands such as L’Oréal Paris, Coca-Cola, and Kellogg’s. InMobi’s approach also allowed the startup to offer advertisers a wider reach and publishers a more efficient way to monetize their content.
In addition to this, the company has also diversified its operations through acquisitions, most notably its investment in Glance, a unicorn startup operating a popular Android lockscreen platform. InMobi has managed to achieve this growth with a relatively modest fundraising history, having raised less than $300 million to date. Glance delivers news, local events, sports, media content, and games directly to the lock screens of over 450 million Android smartphones, with around 300 million active users. This approach has made it a key player in the digital content space.
In preparation for the IPO, InMobi is planning to shift its domicile from Singapore to India in the coming months. Speaking of the IPO, the $10 billion valuation would set a high benchmark, especially considering that most recent tech IPOs in India have sought valuations below $5 billion. For example, Paytm, which listed with a $20 billion valuation in 2021, now has a market cap of $3.5 billion. This comes at a time when the domestic IPO market has clocked a recovery and growth – during the first half of the year, 35 privately-owned companies listed on the stock markets, raised around ₹32,000 crore, and had their IPOs subscribed 61 times on average.
According to reports, the startup’s IPO will encompass the entire group, including its advertising arm and its investments in Glance. The company also expects to generate an annual revenue of over $700 million by the end of March. With generative AI being the name of the game for the tech industry, InMobi is betting on it to drive future growth and enhance user engagement. The company plans to launch a revamped version of Glance that incorporates generative AI to deliver personalized feeds and experiences. This new feature will allow users to visualize themselves in clothing from different brands, leveraging AI to create a more immersive shopping experience.
Additionally, InMobi aims to integrate generative AI into its advertising business. This technology will enable the creation and insertion of native advertisements into various content types, potentially transforming the adtech landscape. By harnessing AI, InMobi seeks to provide more tailored and effective advertising solutions as well.
