MUMBAI/NEW DELHI/TOKYO: SoftBank has sold a significant portion of its shareholding in ad-tech firm InMobi, reducing its stake from around 35% to between 5% and 7%, according to multiple reports.
The transaction – a share buyback arranged by InMobi – will see the Japanese investor recoup approximately $250 million.
Founders Take Control Ahead of IPO
As part of the buyback, the founders of InMobi – including its co-founders and senior management – will together control a majority stake of more than 60–80% of the company.
To fund the buyback, InMobi raised $350 million in dollar-denominated debt from a consortium of private credit funds, including Värde Partners, Elham Credit Partners and SeaTown Holdings.
Valuation, Background & What It Means
The deal values InMobi at roughly $1 billion, similar to the valuation it had when SoftBank initially invested in the company back in 2011.
SoftBank’s original investment was reportedly around $200–220 million at that time. The current exit thus allows SoftBank to recover its invested capital – though not necessarily deliver a large return, given that SoftBank had previously written down the investment during InMobi’s challenging years.
For InMobi, the buyback and consolidation of ownership come as the company gears up for a planned initial public offering (IPO). The restructuring gives the founders tighter control and a cleaner cap table ahead of going public.
Why This Matters
- The deal marks a rare liquidity event for SoftBank in India – and a significant exit from its first bet in the Indian market.
- For InMobi, bulk founder ownership ahead of IPO could help streamline governance and align incentives for future growth.
- The move underscores a broader trend: Indian startups reworking ownership ahead of public listings – often by raising debt to buy back investor stakes.
