Image Source: The Hindu Business Line
In a strategic move that underscores its pre-IPO ambitions, SoftBank-backed mobile advertising giant InMobi is seeking a $350 million private loan to fund a share buyback and accelerate capital expansion. The loan, currently under negotiation, is expected to help streamline the company’s cap table and support its aggressive growth plans ahead of its anticipated public listing in India.
Key highlights of the announcement:
1. InMobi is pursuing a $350 million private loan to repurchase shares from SoftBank and other equity holders
2. The remaining proceeds will be used for capital expansion, including strategic acquisitions
3. The loan is part of InMobi’s broader IPO preparation strategy, with a listing expected by October 2025
4. The company’s valuation could range between $8 to $10 billion, making it one of India’s largest software startup IPOs
Strategic rationale and timing
Founded in 2007 in Mumbai and now headquartered in Singapore, InMobi became India’s first unicorn in 2011 following major investments from SoftBank, Kleiner Perkins, and Sherpalo Ventures. The company has since evolved into a global leader in mobile advertising and AI-driven marketing platforms.
The decision to raise private debt ahead of its IPO reflects a growing trend among Indian startups. By securing non-dilutive capital, InMobi aims to:
• Optimize its ownership structure by buying back shares from early investors
• Avoid equity dilution before going public
• Strengthen its balance sheet to support inorganic growth and platform expansion
This approach mirrors recent moves by other Indian startups such as Table Space, which raised ₹200 crore through private credit to acquire equity stakes ahead of its own IPO.
Use of proceeds and operational goals
The $350 million loan will be split across two primary objectives:
1. Share buyback: A significant portion will be used to repurchase shares held by SoftBank and other early investors. This allows InMobi to consolidate ownership and offer cleaner equity terms to future public shareholders
2. Capital expansion: The remaining funds will be deployed toward strategic acquisitions, product innovation, and scaling its AI commerce platform
InMobi’s leadership is reportedly focused on expanding its footprint in North America and Southeast Asia, enhancing its programmatic ad tech capabilities, and investing in AI-driven consumer engagement tools.
Private credit market dynamics
InMobi’s loan pursuit is emblematic of India’s booming private credit market, which recorded $9 billion in deal volume in the first half of 2025—a 53 percent increase from the same period last year. This surge is driven by:
• Limited access to traditional bank financing
• Underdeveloped corporate bond markets
• Demand for flexible, fast-execution funding models
Private loans offer customized structures and faster turnaround, making them attractive for startups preparing for IPOs or large-scale expansions.
Investor sentiment and IPO outlook
InMobi’s IPO is expected to be one of the most closely watched listings in India’s tech sector. Analysts project a valuation between $8 to $10 billion, with the offering likely to include both fresh issue and offer-for-sale components. The buyback of SoftBank’s stake could help reduce overhang and improve market perception.
The company’s strategic use of private debt is seen as a disciplined move to balance liquidity needs with long-term shareholder value creation. If executed successfully, it could set a precedent for other Indian unicorns eyeing public markets.
Conclusion
InMobi’s $350 million loan initiative marks a pivotal moment in its journey from startup to publicly listed tech powerhouse. By leveraging private credit to manage investor exits and fuel expansion, the company is positioning itself for a high-impact IPO while maintaining financial agility. As the deal progresses and listing plans unfold, stakeholders will be watching closely to assess how this capital strategy translates into market leadership and sustained innovation.
Sources: The Hindu BusinessLine, Tech in Asia, Futunn News
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