Google is reportedly in talks to buy Bangalore-based startup InMobi, a mobile advertising network claiming to have more than one billion users across 200 countries.
Although financial details are being worked out, InMobi had been looking for a valuation of over $2 billion in its discussions with investors for its next round of funding, according to Seekingalpha.com.
The purchase of InMobi, one of India’s first mobile startups, would boost Google’s strength in the fiercely competitive mobile advertising sector, which is increasingly dominated by Facebook.
India’s Economic Times, citing two sources close to the talks, said Google would soon conduct due diligence and then discuss commercial terms.
InMobi was set up in 2007 and and has received early-stage funding from Japanese mobile operator SoftBank and venture-capital firm Sherpalo. It has offices in 17 countries and about 900 employees.
InMobi, whose ad service on mobile websites is based on the profiles and behaviours of users’ visits, charges 40 per cent of the fee advertisers pay to mobile internet sites. The company said it made a profit for the first time in Q4.
Last month it reported receiving more than six billion ad requests on a daily basis, up from 4.8 billion per day last November.
In terms of geographic distribution, it said 43 per cent of the unique mobile devices on its network come from developed mobile markets in North America and western Europe. Asia Pacific is the second largest contributor, with 38 per cent of unique mobile devices, while Latin America makes up 10 per cent.