IPO Alert: MapmyIndia submits papers to go public

Digital mapping services are becoming very popular in India, due to the convenience they offer and useful features like cloud-based customized interactive maps that provide real-time updates across different platforms.

The Indian addressable market for digital maps is expected to grow at a CAGR of around 15.5% and reach ₹4 74.9 billion by 2025. The global addressable market stood at around ₹6.4 trillion as of 2020 and is expected to reach around ₹12.9 trillion by 2025, growing at a CAGR of 13%.

MapmyIndia, also known as CE Info Systems Ltd, recently filed a draft red herring prospectus with the Securities Exchange Board of India to raise funds via an initial public offering. The IPO comprises a pure offer for the sale of 7.55 million shares by existing shareholders and promoters. The company said it will not receive any proceeds from the offer and that all the offer proceeds will go to the respective selling shareholders.

Technology Products

CE Info Systems is a data and technology products and platforms company, offering proprietary digital maps-as-a-service, software-as-a-service, and platform-as-a-service. The company provides advanced digital maps, geospatial software, and location-based IoT technologies.

The Delhi-based company provides products, platforms, application programming interfaces, and solutions across a range of digital map data, software, and IoT for the Indian market under the MapmyIndia brand, and for the international market under the Mappls brand.

The company’s digital maps cover 6.29 million kilometers of roads in India, representing 98.50% of the country’s road network, and provides location, navigation, analytics, and other information for 7,933 towns, 6,37,472 villages, and 17.79 million places across categories such as restaurants, retail shops, malls, ATMs, hotels, police stations etc.

CE info Systems has also started to build and release digital maps for countries outside India, such as Sri Lanka, Bangladesh, Nepal, Bhutan, Myanmar, the UAE, and Egypt.

Financials

In the fiscal year ended March 2021, the company’s total revenue stood at ₹1.92 billion, against ₹1.63 billion a year ago. Net profit for the year was 594 million versus ₹232 million last year.

Meanwhile, there are concerns that GPS-based satellite navigation products could be used to violate personal privacy by potentially making available details of a person’s geographical location to others. CE Info Systems’ products can create similar concerns among the public, which might affect the company’s operating results and financial condition.