My purpose is to build my mobile app backend serverless. Now, when I try to create MobileServiceClient instance, it asks for an Azure Mobile App URI, can this URI be an Function App URI or it has to be only Mobile App?

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You should be able to handle the mobile apps server logic with functions, though you'll be rolling all of this on your own.

One possibility: deploy a mobile app which uses the Azure Mobile Apps sdk at the root of your function app (they're both built on top of Web Apps). Then, use proxies / functions to handle any custom api calls from the mobile client so that you can convert over at your own pace.