MapmyIndia to continue focusing on its core B2B and B2B2C businesses

Rohan Verma, CEO and Executive Director, MapmyIndia to float a B2C new venture. As per the regulatory requirements he will relinquish all executive responsibilities in the company and continue to be on the MapmyIndia board as a nonexecutive Director (w.e.f. April 1, 2025) In sync with the company's strategic initiatives to support and nurture innovative businesses. MapmyIndia will take 10% stake and provide an additional funding of Rs 35 crores via CCD in the new company.

"As the consumer business requires a dedicated focus to build Rohan Verma, CEO and Executive Director of MapmyIndia proposed to the board to fund a new venture outside the company. The proposed consumer business will complement and showcase MapmyIndia's core market strength of B2B and B2B2C, while focusing exclusively on the B2C segment. The MapmyIndia board approved a funding of 35 crores by way of CCD in addition to acquiring 10 percent equity stake in the start-up. Rohan Verma will now be able to fully focus on the consumer business. Rohan continues to stay on the Board of MapmyIndia as a Non-Executive Director. MapmyIndia will continue to focus on its core B2B and B2B2C business, which has a large and growing addressable market, and where MapmyIndia is the market leader with a strong track record of growth and profitability. MapmyIndia leadership continues to be spearheaded by us founders, myself and Rashmi Verma, along with our able and established management team" says Rakesh Verma, Co-founder & CMD, MapmyIndia.

Brand and Business restructuring - The new company will be using the MapmyIndia's retail brand Mappls, whereas Mapmyindia which uses the brand for its B2B2C and B2G2C offerings will continue to have access to the same. Mappls Mall and Travel which is in the incubation stage will be transferred to the new company along with Mappls gadgets for consumers marketed through D2C or ecommerce channels. MapmyIndia will have access to anonymized data collected by the Mappls app to improve MapmyIndia's map data. The new company will operate as an independent entity and bear all expenses related to its business be it people cost, marketing cost and cloud cost.

The ownership structure and funding - Rohan will hold 90% stake in the new company while the balance 10% will be with MapmyIndia. The company will also be subscribing to Rs. 35 crores worth of CCDs of the new company. The CCD will convert to equity either after 10 years or at a 25 percent discount to any 3rd party valuation of new company whichever is earlier. The terms have been approved by the board. The CCD money will be invested in the new company. The future capital requirement will be taken up by the MapmyIndia board at appropriate time.

A win-win for both companies - The RPT (Related Party Transaction) has been considered carefully by the board and it is as per compliance requirement. MapmyIndia founders (Rakesh Verma and Rashmi Verma) will have no part in the new entity. They will be completely focused on building MapmyIndia and have no other interests beyond MapmyIndia and will continue guiding the company towards new growth trajectories without any distractions. While Rohan can concentrate his energies on building the B2C business. The consumer business which is a cash consuming business will not affect MapmyIndia's books, since MapmyIndia will be a minority stakeholder in the newly formed, independent entity.

Shares of C E Info Systems Limited was last trading in BSE at Rs. 1753.80 as compared to the previous close of Rs. 1748.30. The total number of shares traded during the day was 6864 in over 1254 trades.

The stock hit an intraday high of Rs. 1764.95 and intraday low of 1720.00. The net turnover during the day was Rs. 11981789.00.

Source : Equity Bulls

Keywords

CEInfoSystems MapmyIndia B2C NewVenture B2B B2B2C