Mobile adtech company InMobi has raised $100 million from US-based Tennenbaum Capital Partners.
InMobi has received nearly $60 million, of which $40 million has been used to pay off the debt raised last year from Hercules Technology Growth Capital (HTGC), said at least three people directly involved in the matter.
“Raising debt underscores investors’ interest in the company with a robust financial health,” said an executive. InMobi declined to comment on the issue, while Tennenboum hadn’t responded to an email query sent by ET till the time of going to press.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 some investment executives who have ad tech companies as part of their portfolio, and who even explored putting money in InMobi, said PEs and VCs are not buying the thesis anymore.
“There’s a certain mismatch in what InMobi sees its real value versus the market reality,” said a person.
Indeed, when AOL (now owned by Verizon) bought mobile ad tech company Millennial Media earlier this month, several industry insiders described it as “mercy killing”. Until a few years ago, Millennial Media was valued over billion dollars, and it sold to AOL for about $1.75 per share, a far cry from its IPO price of 2012 at $13. For its part, InMobi is betting its future on newer, commerce-led models of mobile advertising. Last month, InMobi launched Miip, its new product that uses highend analytics for understanding user interests, and then serves customised ads using animation, etc.