This article first appeared on GuruFocus.
SoftBank (SOBKY) is making a sharp move that could reset the trajectory for one of India’s earliest global tech bets. The group has agreed to sell a large chunk of its InMobi stake back to the company for about $250 million, trimming its holding to less than 10% from more than 30%, according to people familiar with the deal. InMobi recently raised more than $350 million in private credit to fund the buyback and fuel expansion, a financing push that could be laying the groundwork for a potential public listing as the company reshapes a cap table that has been years in the making.
This shift follows a long stretch in which SoftBank had written off its investment after InMobi struggled to scale amid heavier competition from giants like Alphabet Inc. and Meta Platforms Inc. Once billed as a global mobile advertising challenger, InMobi has since diversified into marketing, content, and commerce technologies while working to rebuild profitability. The latest ownership reset could be part of that broader recalibration, giving the company more room to accelerate growth before it tests public-market appetite.
For SoftBank, the partial exit may fit into its ongoing rotation of capital toward late-stage and public-market opportunities, while still keeping a minority stake in a business with reach across Asia and the US. For InMobi, the buyback could position it for a cleaner, tighter, more strategic next chapterone that possibly sets the stage for the company to reintroduce itself to investors with a refreshed balance sheet and a narrative that is still being rewritten.
