According to two sources with knowledge of the situation, InMobi, an adtech startup, is considering a valuation of approximately $10 billion for its upcoming initial public offering scheduled for next year
The sources stated that the company intends to list in India but requested anonymity because the discussions are confidential. According to the sources, InMobi is profitable and intends to relocate its headquarters from Singapore to India shortly.
This would be one of the largest listings by a local software startup if it were to go public in India at a valuation of $10 billion. In recent years, the preponderance of startups listed in India have sought valuations below $5 billion. In 2021, Paytm was valued at $20 billion when it was listed; however, its market capitalization has since decreased to $3.5 billion.
According to the sources, InMobi intends to list at the group level, encompassing its advertising arm, investments, and ownership in Glance, a unicorn startup that administers an Android lock screen platform. According to one of the sources, InMobi anticipates generating an annual revenue exceeding $700 million by the conclusion of March.
On Wednesday, a spokesperson for InMobi declined to respond.
In 2007, InMobi became the first Indian startup to achieve unicorn status. However, the company has faced challenges in the digital advertising sector, dominated by Google and Meta, as it initially struggled to establish a footing.
InMobi maintains an extensive advertising platform incorporating demand-side and supply-side technologies with a substantial ad exchange. It supports tens of thousands of app partnerships in 50 countries. Mastercard, Samsung, Vodafone, Ford, Kellogg’s, L’Oreal Paris, Nokia, Kia, KFC, Dell, and Coca-Cola are the companies the organization serves.
SoftBank is among the investors in InMobi, which has raised less than $300 million to date. SoftBank once depreciated its investment in the startup.
Over the past decade, it has developed a consumer business and expanded its advertising business, which it employs to enhance Glance.
Glance delivers news, sports information, media content, and activities directly to the lock screen of Android smartphones. The application is operational on approximately 300 million smartphones, with over 450 million installed. TechCrunch recently reported that Glance has initiated a pilot program in the United States.
The company will release a new Glance version shortly, integrating generative AI to provide users with personalized feeds and experiences. According to internal demonstrations reviewed by TechCrunch, one feature will enable users to visualize themselves in clothing from various brands.
Glance’s ability to customize the user experience has been restricted by its failure to obtain user data. InMobi is wagering that generative AI will enable the app to adjust to user preferences and provide experiences that will maintain their engagement with the platform and stimulate commerce.
According to the demonstrations, InMobi intends to implement comparable generative AI solutions in its advertising business to facilitate the development and integration of native advertisements into a diverse array of content.