MapMyIndia logo displayed on a smartphone
Illustration: TechStory × Freepik

MapMyIndia files IPO draft papers with SEBI

C.E Info Systems owned digital mapping firm MapMyIndia has filed its draft red herring prospectus (DRHP) with market regulator SEBI to raise funds via an initial share sale. The initial public offering (IPO) consists of a pure offer for sale (OFS) of 7.55 million shares by the company’s existing shareholders and promoters.

MapMyIndia logo displayed on a smartphone
Illustration: TechStory × Freepik

According to the draft of the prospectus, Rashmi Verma executive director of MapmyIndia owns 3.07 million shares. Qualcomm, a major smartphone chip manufacturer, and company’s early investor would offload up to 2.03 million equity shares, whereas Japanese map publisher Zenrin will sell up to 1.03 million equity shares.

Cofounder Rakesh Kumar Verma and Rashmi Verma currently own 28.65 percent and 35.88 percent respectively in the company. MapmyIndia has appointed Axis Capital, JM Financial, Kotak Mahindra Capital, and DAM Capital Advisors as the lead managers to the issue. The IPO is likely to launch next year after SEBI’s approval.

C.E Info Systems is among the few profitable entities that will be listed on the stock exchange. According to the company’s financials, MapmyIndia made a profit of Rs 59.4 crore in FY21, up from Rs 23.1 crore in FY20. The company’s overall income surged to Rs 192.2 crore in FY21 from Rs 163.4 crore the previous year.

The company’s overall expense reduced significantly in FY21 to Rs 113.5 crore from Rs 131.8 crore in FY20. It’s also important to mention that the company’s employee benefits expense has decreased from Rs 64.2 crore in FY20 to Rs 53.9 crore in FY21.

MapmyIndia founded in 1995 is a leading producer of advanced digital maps, geospatial software, and location-based IoT technologies in India, and its database powers both Apple Maps and Inc.’s Alexa. Under the brand name MapmyIndia and Mappls, C.E Info Systems offers products, platforms, application programming interfaces (APIs), and solutions in a wide range of digital map data, software, and IoT for the Indian market.

MapmyIndia has been designing digital maps since the early 2000s before expanding into consumer navigation devices, mobile apps, and fleet-tracking solutions for cab aggregators and other businesses. After years of success, the technology corporation is globally recognized as one of India’s leading providers of robust GPS navigation and tracking systems.

Besides powering Apple products, MapmyIndia maps are often used by digital payment providers such as Paytm, PhonePe, as well as on certain e-commerce platforms. Major food delivery platforms such as McDonald’s, Grofers, and automobile marketplace such as Cars24 also heavily rely on MapmyIndia digital infrastructure. The company’s products are also integrated with store locators such as SBI Branch Locator, Bajaj Finserv, and Prasar Bharti DTH Dealer locator.

The business model of the mapping company is focused on customer royalty charges, subscriptions, and annuities in exchange for licensing to its intellectual property-based digital map data, platforms, APIs, and software solutions.