IPO Update: C.E. Info Systems Limited (MapMyIndia)

Company Introduction: In 1995, a US-returned techie started a then impossible journey of mapping entire India. This was ten years before the launch of Google maps! Today, the company founded by Rakesh Verma and Rashmi Verma provides digital maps and location-based IoT (Internet of things) technologies to some of the biggest companies in India. Under the ‘MapmyIndia’ brand, its digital maps cover 98.5% of Indian roads. It runs a profitable business and has low variable costs. Even the government of India uses its mapping services for the CoWIN App. 

• Has an early mover advantage and its proprietary mapping technologies offer a profitable business model.
• In FY21, it had over 500 customers. Some marquee names include Flipkart, HDFC Bank, Airtel, Hyundai, PhonePe and MG Motor.
• 90% of its revenue comes from subscription fees and royalties charged for using its products. 
• PhonePe, Qualcomm and Zenrin (a Japanese mapping co.) are investors in the company. 

IPO Timeline

    Application start

09-12-2021

Application end

13-12-2021

Allotment begins

16-12-2021

Refund Initiation

17-12-2021

Allotment date

20-12-2021

Listing on exchange

21-12-2021

Key Strengths

• Comprehensive local database with 1.8 crore places such as restaurants, ATMs, EV charging stations and 1.4 crore houses mapped.
• Its independent nature makes it a popular choice in the B2B segment and helps it score over Google Maps.
• The company enjoys high operating leverage due to low variable costs. Despite the pandemic, its net profit grew at 32% CAGR FY19-21. 

Key Weaknesses

• Faces competition from global majors like Google maps and TomTom.
• About 80% of its revenue came from just 25 clients in FY21.
• High dependence on the automotive sector.
• Operates in a space that is subject to rapid technological changes.

Business Growth Opportunities

The Indian digital map services industry is pegged to grow at 16.1% CAGR to over ₹31,000 crore by 2025. Growing smartphone penetration and mobile apps are long-term structural drivers. The government’s new Geospatial Guidelines will drive digitization of maps and work in favour of domestic companies such as CE Info.

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