MapMyIndia under lens for biz transfer

Digital maps pioneer MapMyIndia has come under the scrutiny of investors and proxy advisory firms after the company agreed to invest ₹35 crore and transfer a tiny share of its business to a company owned by the son of its founder and promoter.

- Varun Sood

On Friday, MapMyIndia's parent C.E. Info Systems Ltd informed stock exchanges that chief executive officer Rohan Verma would step down and start a new business-to-consumer (B2C) venture. The company will transfer its Mappls Mall and Travel app for hotel and flight booking to the new company.

MapMyIndia, which provides data to Apple Maps and Amazon's Alexa, ended FY24 with ₹379.4 crore revenue. According to co-founder, chairman and managing director Rakesh Verma, the B2C business is not more than ₹50 lakh in revenue.

Rohan Verma would own 90% of the new venture, while MapMyIndia will spend ₹10 lakh to acquire 10% equity and invest 35 crore through compulsorily convertible debentures (CCDs).

"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," Rakesh Verma said in a prepared statement on 1 December.

MapMyIndia shares closed 3.5% lower at ₹1,692 on Monday even as the Sensex ended 0.6% up at 80,248 points.