SoftBank cuts InMobi stake in $250 million buyback deal

The transaction is part of a broader cap-table reshuffle as InMobi prepares for a potential public listing

SoftBank Group Corp. has agreed to sell a large portion of its stake in InMobi Pte back to the mobile advertising company for about $250 million, unwinding much of an investment that created India’s first unicorn in 2011.

InMobi will repurchase the shares to reduce SoftBank’s holding to less than 10% from more than 30%, people familiar with the matter said, asking not to be identified discussing private information. The transaction is part of a broader cap-table reshuffle as InMobi prepares for a potential public listing.

SoftBank had previously written off its investment after InMobi struggled to scale and faced intensifying competition in the global mobile advertising market, the people said. InMobi is now seeking to reset its ownership structure and accelerate growth before tapping public investors.

InMobi raised more than $350 million in private credit recently to fund the buyback and support expansion, according to the people. Representatives for SoftBank and InMobi didn’t immediately respond to requests for comment.

Founded in 2007, InMobi was one of India’s earliest global consumer-tech bets and briefly positioned as a challenger to Alphabet Inc. and Meta Platforms Inc. in mobile advertising. The company has since diversified into marketing, content and commerce technologies, and has been working to bolster profitability after years of slower growth.

SoftBank’s partial exit marks another adjustment in its India portfolio as the group continues to recycle capital across late-stage and public-market opportunities. The Japanese investor retains a minority stake in InMobi, which has operations across Asia and the US.