2 min read.Updated: 30 Aug 2021, 02:44 PM ISTAgencies
The digital map maker, which also powers the navigation system in MG Motor and BMW cars in India, is seeking a valuation of ₹5000 crore -6000 crore ($681-$817 million),
Bengaluru: MapmyIndia, which powers Apple maps in India, will file draft papers for an initial public offering worth ₹1,000 crore to ₹1,200 crore ($136-$163 million) this week, a source with direct knowledge of the matter said.
The digital map maker, which also powers the navigation system in MG Motor and BMW cars in India, is seeking a valuation of ₹5,000 crore to ₹6,000 crore ($681-$817 million), according to the source, who did not want to be named as the IPO details were private.
The New Delhi-based company's IPO will, however, consist solely of an offer for sale, allowing early investors an exit, the source said. MapmyIndia's early investors include Qualcomm Inc, Walmart Inc-backed PhonePe and Japanese mapmaker Zenrin Co Ltd.
Earlier this year, India relaxed restrictions on mapping by allowing local firms to collect, generate, store and produce geo-spatial data including maps. The government expects the geo-spatial products and solutions market to be worth $13.6 billion by 2030.
The offering comes at a time Indian companies are rushing into capital markets, with equities at record highs as the economy recovers from the pandemic. Food-delivery firm Zomato Ltd saw strong gains in its market debut last month.
MapmyIndia, also known as CE Info Systems, will not get any new proceeds from the offering and retail investors will get 35% of the IPO size, the source said.
Bloomberg News first reported of the company's IPO plans over the weekend.
MapmyIndia is profitable unlike many of the current crop of high-profile but loss-making startups such as Zomato Ltd. that is fueling a tech IPO boom in India. The market for geospatial data and services in the country is one of the fastest-growing in the world, estimated by the government to be worth about $14 billion by 2030.
India relaxed centuries-old stringent controls over mapping and other geographic data earlier this year, making sweeping changes in hopes of spurring startup innovation. That provided a boost for companies like MapmyIndia, which enjoy a privileged position relative to international competitors like Alphabet Inc.’s Google Maps. Foreign mapping players are barred from using high-precision satellite imagery, collecting street-view data and conducting ground surveys to build up their maps, and are required to acquire such data from domestic providers.
MapmyIndia was founded by Rakesh Verma and Rashmi Verma, the husband-and-wife duo who continue to run the company and will remain promoters at the time of the IPO, one of the people aware of the documentation said. The company, also backed by Japanese mapmaker Zenrin Co., began operations in the early 1990s in what is considered one of the most challenging countries for mapping.
Among its early clients was Coca-Cola Co., which tapped into the firm’s topography services to support logistics and distribution. Last year, MapmyIndia devised a Covid-19 dashboard with real-time mapping of containment zones, testing centers and hospitals across the country, making it available to hundreds of millions of users.
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