True North has taken a 2-3% minority stake in India's prominent advertising technology company InMobi via secondary share purchases, supporting the startup's upcoming public listing.
- True North acquired 2-3% stake worth $50-60 million
- InMobi plans $1 billion IPO with $6-10 billion valuation targets
- InMobi focuses on AI-powered adtech and social commerce platforms
What happened
Private equity firm True North has acquired a minority stake in InMobi, the Indian adtech startup preparing for an initial public offering. The investment, valued at approximately $50-60 million, was primarily made through secondary share purchases from early investors seeking partial exits. This transaction also included a smaller tranche of primary funding directly into the company.
The stake acquired by True North is estimated at 2-3%, signaling a strategic minority investment ahead of InMobi’s anticipated IPO. InMobi was founded in 2007 and has grown into a significant player in India’s digital advertising and marketing ecosystem, with additional operations including social commerce platform Roposo and AI-driven Android lockscreen product Glance.
Why it matters
This deal highlights the growing interest from institutional investors in technology businesses focused on advertising and digital commerce in India. By investing prior to the IPO, True North demonstrates confidence in InMobi’s growth potential and ability to capitalize on AI and mobile-driven marketing innovation.
InMobi’s forthcoming public offering is notable for its size, targeting over $1 billion with a valuation initially estimated between $8-10 billion and more recently around $6 billion. The company’s redomiciliation from Singapore to India ahead of the IPO further underscores its commitment to the domestic market and regulatory environment. InMobi has also strategically bolstered its capabilities through acquisitions like the US-based MobileAction platform.
What to watch next
Market participants will closely monitor InMobi’s IPO schedule and final valuation as the company moves forward with its public debut. The involvement of major merchant bankers JPMorgan Chase, Jefferies, Kotak Mahindra Capital, and Axis Capital suggests robust advisory support and significant market interest.
Additionally, investors will be keen to track how InMobi leverages AI technologies and expands its social commerce offerings to sustain growth in the competitive adtech landscape. The startup’s ability to maintain momentum through product innovation and geographic focus will likely impact its valuation and reception in the public markets.