MapMyIndia takes a u-turn, scraps decision to invest in outgoing CEO Rohan Verma’s startup
MapMyIndia's Board of Directors scrapped the decision to invest ₹35 crore in exchange of 10 per cent stake in outgoing CEO Rohan Verma's new business venture, on Monday. Shares were trading higher on December 9.
Indian digital map provider CE Info Systems Ltd, or MapMyIndia's board of directors, announced on Monday, December 9, that the company will not invest in the outgoing CEO Rohan Verma's new venture.
“MapMyIndia’s Board has reversed its decision to make any equity or debt investment in a proposed new company. The Board will continue to explore and evaluate various opportunities in respect to B2C, while re-calibrating its investments in B2C segment,” said the company in the official statement.
CE Info Systems Ltd (MapMyIndia) shares closed nearly 16 per cent higher at ₹1,910 after Monday's market session, compared to ₹1,646.60 at the previous market close. The company announced its decision through a BSE filing closer to the end of the market session.
“We believe that the decisions taken by the Board on 29th November 2024 and today, 9th December 2024 both are taken in the best interest of the Company and all its shareholders including minority shareholders,” said Rakesh Verma, chairman and managing director of MapMyIndia, in the official statement.
On the future outlook, the company aims to focus on the B2B and B2B2C segments, contributing to more than 99 per cent of MapMyIndia's revenues. These segments also continue to represent a significant growth opportunity for the foreseeable future, according to the press release.
What was the original commitment?
Earlier, MapMyIndia was set to invest ₹35 crore via compulsorily convertible debentures (CCDs) in exchange for 10 per cent of Rohan Verma's B2C startup.
“MapMyIndia's board approved investment of ₹35 crore through CCDs (compulsorily convertible debentures)...but after hearing the concerns of minority investors, I have decided not to take the investment, and I'll use my own funds to run this venture,” Rohan Verma told the news portal The Economic Times on December 3.
Mint reported earlier, citing the regulatory requirements, that CEO Rohan Verma will forfeit all executive role responsibilities in MapMyIndia. Verma will be able to stay on the company's board as a Non-Executive Director, effective April 1, 2025, according to the exchange filing on December 1.
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Business NewsCompaniesNewsMapMyIndia takes a u-turn, scraps decision to invest in outgoing CEO Rohan Verma’s startup
First Published:9 Dec 2024, 03:31 PM IST
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