Several people familiar with the matter said the founders of Inmobi and Zetwerk are increasing their debt with personal abilities to increase the interests of their respective companies.
The people quoted above said on anonymity that the founder of Inmobi, led by Naveen Tewari, is raising debt to partially buy early investors. This will also increase the founder group's stake in the company.
The above-mentioned person said that multiple investment banks are arranging trade in Inmobi.
Inmobi did not respond to a request for comment. In an interview Mint In September last year, Tewari said the company intends to list Inmobi and Glance. Inmobi is also turning back to India.
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Inmobi's major shareholder, Softbank Group, has invested in the company since 2010. Other investors include Ram Shriram-backed Sherpalo Ventures and Kleiner Perkins. Inmobi's founders, including Amit Gupta, Mohit Saxena and Abhay Singhal, own a majority stake in the company.
In Zetwerk, co-founders Amrit Acharya and Srinath Ramakkrushnan raised more than $100 million to increase their stake in the company, two independents in the deal said the deal also said, also said, also speaking on anonymous status. The co-founders group (including Vishal Chaudhury and Rahul Sharma) has about 15-16% of people in Zetwerk.
One of the above characters said some early Zetwerk investors might exit the deal, but some capitals are expected to enter the company.
Zetwerk did not respond to a request for comment.
Zetwerk investors include Avenir Growth Capital, Steadview Capital and Khosla Ventures. It was worth about $3 billion at the last time.
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The company will target listings over the next 15 to 24 months and has appointed several banks, including Axis Capital, Goldman Sachs and Kotak Mahindra Bank, for a potential initial public offering (IPO).
Earlier this week Economic times and Bloomberg Report Zepto co-founders are also increasing debt ₹$15 billion increased their stake in fast-business startups. The report notes that Edelweiss alternative asset advisers are negotiating the infusion of capital into the business.
Some cap table adjustments have occurred due to market volatility. An IPO will provide clean exports to early investors and allow companies to raise funds.
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Kashyap Chanchani, co-founder and managing partner of investment bank Rainmaker Group, said the founders have some understanding of the company's internal development. “The cost of debt capital is 12-14% and the return on equity is 25-30%. Founders may wish to invest in their own companies because this is the asset class they know best,” Chanchani said.
