Mobile Ad Tech Company InMobi Raises $100M in New Debt from Tennenbaum Capital Partners

Mobile ad tech company, InMobi has raised $100 million in new debt from a group of lenders by US-based Tennenbaum Capital Partners. In total, InMobi has received around $60 million, of which $40 million has been used to clear the debt raised last year from Hercules Technology Growth Capital (HTGC), confirmed a source closely involved in the deal.

(Source)

InMobi is one of the very few ad tech companies which is operational in multiple countries. (Source)

Commenting on the matter, one of the executives said, “Raising debt underscores investors’ interest in the company with a robust financial health.” No official comment has been released by InMobi yet.

It is not the first time that the company has raised debt fund. Over the past few years, the company has raised debt from the Silicon Valley Bank and Triple Point Capital apart from HTGC and Tennenboum. But as per sources, this practice is not really encouraged by investment executives anymore. They stated that there’s a certain mismatch between what InMobi sees its real value and the market reality.

In August, InMobi launched its discovery commerce in India with Miip platform. At its launch in San Francisco, Naveen Tewari, stated- “Ads today have forgotten the protagonist of the story – the user. With Miip, we will put the user ahead of everyone else and deliver a consistent, personalized, and content-rich experience that users will fall in love with.”

Moreover, recently, InMobi entered into a partnership with APUS Group of China to expand its global footprints. According to the deal, InMobi will share its expertise in India to help APUS establish a larger footprint in India, enabling an increased user base and market share. In return, APUS will engage in a monetization partnership with InMobi that will result in the latter gaining access to more than 200 million additional users across the APUS user system, with exclusive access to all APUS users in India.

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Having established a strong foothold in India, InMobi now clearly wants to spread its tentacles across the international space. Adding a comment on the matter, Naveen Tewari maintained, “We already have massive credit lines and they continue to increase as our business scales and metrics improve. The only way you can increase your debt facility is if you’re doing good on all fronts. Like Miip, we have seven more innovations happening. They’ve been in the works for two years and over the next 12 months, we will launch one after another.”

India as compared to other countries like the US is not really a lucrative market for ad tech. In the Indian market, digital advertising accounts for only 10% of the overall ad expenditure. According to Ankit Oberoi, CEO, AdPushUp.” Revenues per ad impression from markets, such as the US are higher when compared to India. So, the higher revenue allows us to build our billing model also around that and allows us to be flexible, and at the same time, charge more for those publishers because the value which we unlock for them is also in that same proportion.”

Further, it is an avenue which can not be captured easily. InMobi is one of the very few ad tech companies which is operational in multiple countries. Given the highly competitive environment created by giants like Google and Facebook, it is very difficult for ad tech companies to survive in the market. So, it will be really interesting to see how innovative InMobi would be with its next move to keep up with the competition.

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