10 REASONS why InMobi is struggling
INTENSE COMPETITION:
While the global ad- tech market is very large, it is highly fragmented beyond Facebook and Google, which own 40 per cent of the market
PLATFORM OWNERSHIP:
Unlike Facebook, Google, or Twitter, InMobi doesn’t own platforms and thus will always be at a handicap when competing for ad inventory
FAILURE OF MIIP:
InMobi launched its discovery commerce platform MiiP with considerable fanfare and investment last year. That optimism is yet to pay off in terms of revenues
TALENT FLIGHT:
A series of departures of senior leaders — from CFO to chief revenue offi cer to head of M& A — seems to have affected execution
FUNDING PAIN:
InMobi has been struggling to raise funds, even though the company claims it is not looking for the same
LACK OF PROCESSES:
To retain talent, InMobi did away with annual ratings, travel budgets and decided to give bonuses to everybody. This worked when it was small, but was a recipe for chaos and lack of ownership when it grew
POSITIONING DILEMMA:
Most players have decided to focus on one area of expertise — locational or video- based ad tech. InMobi wants to be a horizontal play, a much harder thing to pull- off
DEBT:
The company recently raised $ 100 million in venture debt. Unlike equity, debt for a loss- making company is an expensive proposition
STAFF MORALE:
Recent layoffs in the company of 10-20 per cent of the workforce have hit staff morale
STRATEGY STRUGGLES:
With its largest investor Softbank itself facing leadership turbulence, InMobi has struggled to get its strategy right