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Multinational investor Softbank is cutting its stake worth $250 million in InMobi as part of InMobi’s buyback plan. InMobi raised more than $350 million in private equity to fund this buyback.
InMobi is an advertising company that provides monetisation and marketing services to companies for mobile devices.
What is happening: Softbank once scaled the Bangalore/Singapore-based company to unicorn status, making it one of the first Indian startups to reach that milestone. Now the company is cutting its stake from 35% to 5-7%.
The reason: The move is part of InMobi’s effort to rebalance its ownership structure as it gears up for an IPO. SoftBank had previously trimmed its stake, pointing to InMobi’s challenges in scaling amid intense competition in the global mobile advertising market.
The founders now get to have a majority stake in the enterprise, ease governance, and redirect capital to the company’s India operations.
