The Story Behind InMobi: India’s First Startup Unicorn
The term “unicorn” has become a ubiquitous buzzword in the business world, especially within the startup ecosystem. It refers to a privately held startup company valued at over $1 billion. This once-rare breed of company, hence the mythical comparison, has become increasingly common, particularly in the tech sector. While many are familiar with the term and its widespread use today, and while India has seen a surge in the number of unicorns minted in recent years, few know which company holds the distinction of being India’s first unicorn. That honor belongs to InMobi, and its story is one of vision, adaptation, and ultimately, remarkable success. From its humble beginnings as an SMS-based search service to becoming a global force in mobile advertising, InMobi’s journey is a compelling example of entrepreneurial spirit and the transformative power of mobile technology.
The Beginnings of InMobi
In the bustling tech hub of Bangalore, this story began in 2007. Four friends, Naveen Tewari, Mohit Saxena, Amit Gupta, and Abhay Singhal, all alumni of IIT Kanpur, shared a small apartment and a big vision for the power of mobile technology. Their initial venture, mKhoj, meaning “mobile search” in Hindi, focused on providing information to users via text messages. However, these ambitious founders quickly recognized a larger, untapped potential: mobile advertising. Smartphones were gaining traction, and they saw an opportunity to connect brands with consumers in a more targeted and engaging way. This realization led to a pivotal shift in their business model.
The Birth of a Unicorn: InMobi’s Transformation
In 2008, mKhoj was reborn as InMobi. The name change reflected not only their new focus but also the company’s ambition. “InMobi” was chosen for its global appeal and ease of pronunciation, a stark contrast to the Hindi-derived “mKhoj.” This rebranding marked a crucial turning point, setting the stage for InMobi’s rise.
Initially, InMobi concentrated on emerging markets in Asia and Africa, laying the groundwork for its future global expansion. They understood the potential in these rapidly growing mobile markets and strategically positioned themselves for success. In 2009, they expanded their reach to the US, demonstrating their intent to compete on a global scale.
Securing Funding and Reaching Unicorn Status
Securing funding was critical to InMobi’s growth. Their initial funding of US$500,000 as mKhoj from Mumbai Angels in 2006 was followed by a US$7.1 million Series A round from Kleiner Perkins Caufield & Byers in 2008, after the transition to InMobi. Further fueling their expansion, they secured US$8 million in Series B funding in 2010.
The year 2011 proved to be a watershed moment. InMobi achieved unicorn status, becoming the first Indian startup to reach a valuation of US$1 billion. This milestone was driven by a substantial US$200 million investment from SoftBank, a testament to the company’s potential and the growing investor confidence in the Indian tech scene.
Innovation and Expansion
InMobi’s success wasn’t solely based on timing; it was also about constant innovation and adaptation. They evolved from basic text-based ads to richer formats like video and native advertising, understanding the need to provide engaging and non-intrusive experiences for mobile users. They also developed a Software Development Kit (SDK) to allow app developers to seamlessly integrate InMobi’s advertising platform. The company also made strategic acquisitions, such as Sprout, MMTG Labs, and AerServ, to enhance its offerings and expand its reach.
InMobi’s Legacy in the Digital Advertising Landscape
InMobi’s journey is a powerful example of entrepreneurial vision, strategic pivoting, and relentless innovation. From its humble beginnings as an SMS search service to becoming India’s first unicorn and a global player in mobile advertising, InMobi’s story is an inspiration for aspiring entrepreneurs and a testament to the transformative power of mobile technology. They have continued to evolve and expand through strategic partnerships and acquisitions, solidifying their position in the ever-changing digital advertising landscape.