True North Acquires InMobi Stake Ahead of IPO

True North has acquired a minority stake worth around $50-60 million in SoftBank-backed adtech firm InMobi. The investment, representing approximately 2-3% of the company, is the first technology sector bet from True North's seventh fund and was executed via a largely secondary transaction.

The private equity firm picked up the bulk of the shares from early investors seeking a partial exit ahead of InMobi's anticipated initial public offering. These early investors came in through InMobi's acquisitions, employee stock options, and a few founder-owned entities. The transaction is unusual for True North, which typically acquires significant minority stakes in companies rather than smaller positions. There was likely a small primary funding component, but details of the blended valuation were not available. Both True North and InMobi declined to comment on the deal.

InMobi's business and market positioning

InMobi operates across the advertising technology stack. It makes money by helping advertisers buy digital ads and helping publishers monetize their websites and apps, earning a share of the spending that flows through its platforms. The company is building a new generation of advertising products designed for an internet increasingly shaped by artificial intelligence.

While large platforms such as Google, Meta, and OpenAI are building their own AI advertising products, InMobi is betting that its scale in the open internet-outside the biggest technology platforms-will help it capture a share of the next wave of advertising growth. The company also operates the social commerce platform Roposo and Glance, an AI-based Android lockscreen platform. Founder Naveen Tewari said, "We are excited about the future of AI-powered commerce and adtech."

InMobi's financial trajectory and IPO plans

InMobi is currently engaging with bankers for a $500 million initial public offering in India. The company last raised $350 million from Varde Partners, Elham Credit Partners, and SeaTown Holdings in December 2025. Its financials show an improving trajectory.

Reports earlier this year stated that InMobi appointed JPMorgan Chase & Co, Jefferies, Kotak Mahindra Capital and Axis Capital as merchant bankers overseeing its IPO. The company was initially seeking a valuation of around $8-10 billion, though later reports indicated the figure would be closer to $6 billion. All details of the IPO are subject to change.

Background on the companies involved

InMobi was founded in 2007 as mKhoj by Naveen Tewari, Mohit Saxena, Abhay Singhal, Amit Gupta, and Piyush Shah. Based in Bengaluru, it transitioned in 2008 from an SMS-based search engine to mobile advertising. To date, InMobi has raised over $774 million from investors including SoftBank, Sherpalo Ventures, and Kleiner Perkins.

True North traces its origins to 1999 when it was named India Value Fund Advisors. It was founded to back mid-sized, profitable, and India-centric businesses. Its portfolio companies include ACT Fibernet, Biocon Biologics, and the National Stock Exchange. The firm has raised seven separate investment funds with a combined total exceeding $3 billion since inception, including co-investments. Its seventh fund, which it began raising in 2021, is looking to deploy about $500 million.

True North has a strong exit history, clocking close to $2 billion in exits over the past three years by monetizing investments in companies like Fedbank Financial Services, Niva Bupa, and Biocon Biologics through IPOs and public market transactions. It also recently sold its stake in Cloudnine Hospitals to Permira and Integrace to Warburg Pincus in private market deals.

InMobi is currently engaging with bankers for a $500 million initial public offering in India.