MapMyIndia CEO Rohan Verma to step down, float new venture: 6 key things investors should know
As Bengaluru-based MapMyIndia's CEO Rohan Verma steps down to pursue a new B2C venture, take a look at the details of the plan, disclosures, regulatory requirements, and key aspects investors should know.
Bengaluru-based digital maps startup MapMyIndia's parent company, C.E. Info Systems Ltd, announced in an exchange filing on November 29 that the company's chief executive officer, Rohan Verma, would step down and start a new business-to-consumer (B2C) venture.
C.E. Info Systems Ltd shares closed 8.92 per cent lower at ₹1,538.65 in Tuesday's trading session, compared to ₹1,689.30 at the previous close. The shares have been falling since the markets opened on Monday after the CEO's stepping down announcement became public. Mint reported earlier that the shares closed 3.5 per cent lower on Monday.
Here are six key things investors should know
Regulatory requirement: As per the regulatory requirements, Rohan Verma needs to 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.
Stakeholding: On Tuesday, the company, in a U-turn, said it would not invest ₹35 crore through CCDs in the new company. Rohan Verma told The Economic Times that the company would not invest ₹35 crore in the new B2C venture, which it announced previously.
“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,” Verma told the newspaper.
As per the report, MapMyIndia will still receive a 10 per cent stake in the new entity, for a token amount of ₹10 lakh. “I want the benefits from this venture to accrue to MapmyIndia,” Verma was quoted as saying in the report.
Restructuring: The new B2C entity will use MapMyIndia's retail brand, Mappls, whereas MapMyIndia will continue to use the brands of its B2B2C and B2G2C offerings.
Mappls Mall and Travel will soon be transferred to the new company along with Mappls gadgets for the consumers and will be marketed through D2C or e-commerce channels.
Autonomy: According to the exchange filing, MapMyIndia will have access to the anonymized data collected by the Mappls app to improve the company's map data. The newly formed entity will operate as an independent one and bear all the expenses related to the business, people costs, marketing costs, and cloud costs.
New B2C business: Verma's new B2C business aims to showcase MapMyIndia's core strengths of the B2B and the B2B2C segments. While doing so, the new entity has assured MapMyIndia investors that it will focus on its own B2C segment, as per the statement.
“The proposed consumer business will complement and showcase MapMyIndia’s core market strength of B2B and B2B2C while focusing exclusively on the B2C segment,” Rakesh Verma, chairman and managing director of MapMyIndia, noted in an official statement on December 1.
Disclosures: The company also disclosed that MapMyIndia founders Rakesh Verma and Rashmi Verma will not be part of the new venture. This gives Rohan Verma the chance to “concentrate his energies on building the B2C business,” as per the BSE filing.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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