InMobi Founders Buy Back $250 Mn Stake From SoftBank

Adtech Sector Sees Major Pre-IPO Stake Shift
December 4, 2025

Founders Increase Stake to Over 80% Before Planned 2026 IPO
Singapore-based mobile advertising leader InMobi’s founding team has repurchased a 25–30% stake from longtime investor SoftBank Vision Fund for $250 million. The deal values the company at approximately $1 billion and slashes SoftBank’s ownership from 35–40% to 5–7%. Funded through a $350 million debt raise from Varde Partners, Elham Credit Partners, and SeaTown Holdings, this move strengthens founder control ahead of a 2026 public listing.

Pre-IPO Consolidation Led by Founders
CEO Naveen Tewari and co-founders Abhay Singhal, Mohit Saxena, and Piyush Shah now hold over 80% of the company alongside employees—a jump from 30%—granting greater flexibility for IPO preparations. SoftBank, which initially invested $200–220 million starting in 2011, exits with significant returns despite a 2016 valuation markdown. This marks SoftBank’s second founder-led buyback this year, following a similar move with eyewear brand Lenskart.

The $350 million debt includes $200 million at the operating company level and $150 million secured against founder shares. Of this, $250 million covered the SoftBank repurchase, with the remainder allocated to operations, mergers, and growth initiatives.

Global Mobile Ad Platform Targets Public Listing
Founded in 2007, InMobi’s AI-driven advertising platform spans 165+ countries, linking brands with 1.8 billion devices. Despite reporting a ₹204 crore loss from expansion efforts in FY25, revenue reached ₹1,000 crore, with EBITDA turning positive at ₹50 crore. The company dominates India’s $10 billion ceiling fan market, driving 70% of sales, while expanding into mixer grinders (₹200 crore annual run-rate), air conditioners, purifiers, and smart locks.

A recent $100 million debt facility from MARS Growth Capital (a joint venture of MUFG and Liquidity Group) preceded this restructuring. Analysts forecast $1 billion revenue and 25% EBITDA margins by FY28 as the company scales toward 10 million unit production capacity.

IPO Strategy Amid Market Momentum
The buyback coincides with India’s record $19.6 billion IPO wave this year, where consumer tech listings have averaged 50% first-day surges. Comparable valuations of peers like Crompton Greaves (60x earnings) and Havells (70x) support InMobi’s positioning. SoftBank retains a minority stake to capitalize on potential IPO gains.

Challenges include pricing pressure from Chinese imports and losses from new product category expansions. The company plans to offset these with 20 new product launches and vertical integration in motor manufacturing.

This consolidation—mirroring Lenskart’s strategy—sharpens governance for public markets while advancing InMobi’s ambitions in the $500 billion digital advertising industry.