Private equity firm True North has picked up a minority stake in InMobi, making a USD 50-60 million investment in the advertising technology company as it prepares for an initial public offering in India.
True North has acquired around 2-3% in InMobi, with the transaction largely involving the purchase of shares from existing shareholders. These include early investors, shares linked to employee stock options and some founder-owned entities. The deal is also said to include a smaller primary component.
The valuation at which the True North InMobi stake was acquired has not been disclosed, as the shares were bought across different entities.
The deal also marks the first technology investment from True North's seventh fund. The size of the holding is relatively small for the investment firm, which has historically also pursued larger minority and majority positions. Technology products and services are among True North's four focus sectors.
Neither company has formally announced the transaction.
InMobi moves towards public markets
The investment comes as InMobi works towards an India IPO. The company has appointed JPMorgan, Jefferies, Kotak Mahindra Capital and Axis Capital for the listing process, which has previously been expected to raise around USD 1 billion. The eventual size and timing of the offer could still change.
For existing shareholders, the secondary transaction provides some liquidity ahead of the proposed listing, while bringing another institutional investor onto InMobi's cap table.
Founded in 2007, InMobi operates advertising and consumer technology businesses. Its advertising platform works with brands, agencies and publishers across digital media, while its wider consumer portfolio includes Glance. The company has increasingly been building AI-led products across media buying, advertising experiences and commerce.
