InMobi’s Major Investment in AI: A New Era for Glance AI
The Google-backed InMobi group is accelerating its focus on artificial intelligence (AI) with a staggering $200 million (approximately Rs 1,720 crore) investment in two key projects: the AI commerce platform Glance AI and a generative AI ad tech stack, all while gearing up for a listing on the Indian stock exchange.
Big Bets on AI
Naveen Tewari, co-founder of InMobi, shared insights with ET, stating, “We have two big bets on AI. One, Glance AI, is already out, and the GenAI ad stack will be launching by the end of this year.”
Future Investments
Looking ahead, Tewari indicated that InMobi is poised to invest a few hundred million more into the AI commerce platform, which is set to launch across 140 countries, including India and the US.
Collaboration with Google
Glance AI was developed in partnership with Google, which holds a 10% stake in the company. “We work closely with the Google DeepMind and Gemini team,” Tewari remarked.
Financial Background of Glance
To date, Glance has successfully raised $390 million, achieving a valuation of $1.7 billion. InMobi, which owns 50.5% of Glance, has raised $266 million, with SoftBank being its most significant investor.
Plans for Redomiciling and IPO
While Tewari refrained from discussing InMobi’s plans for its redomiciling to India and an initial public offering (IPO), it has been learned that the redomiciling process from Singapore to India will commence before preparations for the Indian stock market listing, anticipated later this year or early next year.
Funding Before the IPO
Before the IPO, InMobi plans to secure additional funding for Glance. For the fiscal year 2022-23, InMobi reported revenues of $268 million and profits of $42 million. In contrast, Glance’s revenue stood at $38.7 million, with losses amounting to $130 million.
Competitive Landscape
Executives acknowledge that while Glance AI has an intuitive model that may lower operational costs, competition is intensifying. Google has recently launched an AI feature in shopping that allows users to virtually try on clothes using a selfie, posing challenges for Glance AI’s competitive advantage.
Strategic Perspective
“You cannot build a business hoping nobody else would. You cannot predict that,” Tewari noted. He emphasized that “These are self-learning models. As they scale, consumer usage will increase, thereby enhancing intelligence. However, in AI, first or second movers tend to have a disproportionate advantage due to the training that happens at scale.”
Building Distribution Channels
To expand its distribution capabilities, InMobi is integrating its AI technology into multiple platforms, including phones, TVs, and digital retail outlets. They are collaborating with original equipment manufacturers such as Motorola and service providers like Verizon in the US.
Outreach through Partnerships
InMobi aims to bring its technology to Android TV and by partnering with Bharti Airtel. “Our goal is to reach 50 million users within the first 100 days through this strategy,” Tewari predicted.
Conclusion
As InMobi invests heavily in AI technology and prepares for its IPO, it is simultaneously navigating a competitive landscape and expanding its global reach. With partnerships and innovative products like Glance AI leading the way, the future appears promising for the tech giant.
FAQs
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What is InMobi’s recent investment?
InMobi has invested $200 million in Glance AI and a generative AI ad tech stack.
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How much is Glance AI valued at?
Glance AI is currently valued at $1.7 billion after raising $390 million.
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What are InMobi’s plans for an IPO?
InMobi is expected to begin the process of redomiciling from Singapore to India in preparation for an IPO later this year or early next year.
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What competitive challenges does Glance AI face?
Glance AI faces competition from tech giants like Google, which has launched similar AI shopping features.
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What partnerships is InMobi pursuing?
InMobi is partnering with manufacturers like Motorola and service providers like Verizon to integrate its AI technology across multiple platforms.
