InMobi founders buy back $250m stake from SoftBank

InMobi founders have repurchased a stake worth about US$250 million from Japanese investor SoftBank, reducing SoftBank’s holding in the company from roughly 35% to between 5% and 7%.

SoftBank, which originally invested around US$200 million to US$220 million in InMobi starting in 2011, is expected to receive US$250 million from this transaction, according to sources.

The buyback was financed through debt, with InMobi’s founders pledging their shares as collateral.

According to news reports, InMobi and its founders raised US$350 million in debt from Varde Partners, Elham Credit Partners, and SeaTown Holdings.

The deal reportedly values InMobi at under US$1 billion.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

InMobi’s IPO math doesn’t add up after this secondary buyout

Founders bought SoftBank’s stake for about $250 million. That cut SoftBank from roughly 35% to 5–7% and implies a sub-$1 billion value. The company later pitched a $10 billion IPO in July 2024 then $5–6 billion in July 2025 1 2.
The 5–10x gap hints at a steep discount on the debt-backed buyback or IPO hopes that outrun the market.
InMobi raised $350 million of debt for the deal. Glance lost Rs 929 crore ($111 million) in FY 2024 on Rs 614 crore in revenue after 89% growth, with Rs 2.55 spent per Rs 1 earned 3. Management guides to more than $700 million revenue by March 2025, which tightens cash once you add Rs 436 crore in yearly Glance marketing and upcoming interest bills 1 3.

Secondary buyers can use the pricing gap

A $250 million secondary at sub-$1 billion while public targets sit at $5–10 billion opens a window for buyers who fund employee or small-holder liquidity 2 1.
SoftBank now holds 5–7%. Other institutions seeking an exit may wait for a listing, with a draft prospectus planned this year 2.
Growth-stage and crossover funds can bid at 2–3x the implied $1 billion level from stressed sellers. That still leaves room if an IPO lands near $5 billion. Support comes from a $700 million revenue run rate, reach on 450 million devices through Glance, and clients like Mastercard and Samsung 1.