Adtech Startup InMobi Eyes $10 Billion Valuation in Planned IPO
InMobi, a prominent adtech startup, is set to list its shares on the Indian stock exchange at an estimated valuation of around $10 billion. The company plans to shift its domicile from Singapore to India and list itself as a group entity, which includes its advertising arm, investments, and ownership in Glance, a unicorn startup that operates an Android lockscreen platform.
A Valuation Worth Watching
The potential IPO valuation of $10 billion would make InMobi one of the biggest listings by a local software startup in India. Historically, most Indian startups have listed at valuations below $5 billion. However, with Paytm’s market cap currently standing at around $3.5 billion, after listing at a valuation of $20 billion in 2021, InMobi’s estimated valuation seems more plausible.
Revenue Projections and Funding Rounds
InMobi is expected to generate an annual revenue of over $700 million by the end of March, one of the sources close to the matter revealed. Additionally, Google, an existing backer of Glance, is reportedly engaging with InMobi to lead a new funding round worth more than $200 million in Glance. This funding round could be finalized within weeks.
InMobi’s Journey
Founded in 2007, InMobi was the first Indian startup to become a unicorn. However, the company has had its fair share of ups and downs as it struggled initially to secure its foothold in the digital advertising space dominated by Google and Meta. Today, InMobi operates a comprehensive advertising platform that integrates demand-side and supply-side technologies with a large ad exchange. It serves tens of thousands of app partnerships across 50 countries.
Key Clients
InMobi’s client list includes prominent brands such as Mastercard, Samsung, Vodafone, Ford, Kellogg’s, L’Oréal Paris, Nokia, Kia, KFC, Dell, and Coca-Cola. The company has raised less than $300 million to date, with SoftBank being one of its key backers.
Glance: A Growing Consumer Business
InMobi has expanded its advertising business over the past decade and built a consumer business that leverages Glance, an Android lockscreen platform that brings news, information on local events, sports, media content, and games directly to users’ screens. The app is installed on more than 450 million smartphones and active on about 300 million devices. Glance has recently started a pilot in the U.S., as reported by TechCrunch.
Generative AI: A Key Growth Driver
The firm plans to launch a revamped version of Glance, incorporating generative AI to bring personalized feeds and experiences to users. One feature will allow users to see themselves in clothes from different brands, according to internal demos reviewed by TechCrunch. This move is expected to adapt user preferences and drive commerce.
A Bet on Generative AI
InMobi is betting big on generative AI to enhance its advertising business and create native advertisements that can be inserted into various types of content. The company aims to enable the creation of personalized experiences for users, driving engagement and commerce.
Conclusion
InMobi’s planned IPO at an estimated valuation of $10 billion highlights the growth potential of Indian startups in the global market. With a strong track record of revenue growth, a diverse client base, and innovative use of generative AI, InMobi is poised to make a significant impact on the advertising landscape.
References
- "Adtech startup InMobi eyes $10 billion valuation in planned IPO" by TechCrunch
- "Paytm’s market cap stands at around $3.5 billion after listing at $20 billion in 2021"
- "Google to lead new funding round worth over $200 million in Glance"
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