InMobi seeks $350m private loan ahead of India IPO

InMobi Group, a mobile ad platform backed by SoftBank Group Corp., is seeking a US$350 million private loan ahead of its planned IPO in India, according to people familiar with the matter.

Part of the loan proceeds will fund the buyback of shares from SoftBank Group Corp. and other equity holders, while the rest is for capital expansion ahead of InMobi’s IPO, including strategic acquisitions.

Talks for the private loan are ongoing, and plans could still change, the people said.

A representative for InMobi declined to comment.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Pre-IPO loans becoming strategic tools for Indian startups

InMobi’s $350 million loan request reflects a growing pattern where Indian startups use private debt strategically before going public.

Part of InMobi’s loan proceeds will fund buybacks of SoftBank and other investors’ shares, while the remainder supports capital expansion and acquisitions ahead of their planned IPO1.

This approach mirrors other Indian startups like Table Space, which raised 2 billion rupees ($22.7 million) through private credit in June to purchase stakes before their own planned IPO1.

The strategy allows companies to optimize their cap tables and strengthen their balance sheets without diluting existing shareholders through additional equity rounds.

For InMobi specifically, this loan helps position the company for their targeted $1 billion IPO at a $5-6 billion valuation while managing investor liquidity needs2.

2️⃣ India’s private credit boom driven by financing gaps

InMobi’s loan pursuit taps into India’s rapidly expanding private credit market, which recorded $9 billion in deal volume during the first half of 2025—a 53% increase from the same period last year1.

This growth stems from constraints on traditional bank lending and India’s underdeveloped bond market, making it difficult for companies to access conventional financing3.

Private credit offers faster execution, customized structures, and flexible terms that appeal to borrowers willing to pay premiums for these advantages3.