C E Info Systems (MapmyIndia) announced on 1 December 2024, that it will continue focusing on its core B2B and B2B2C businesses. Rohan Verma, CEO and executive director, MapmyIndia will step down to float a business-to-consumer (B2C) venture. MapmyIndia will take 10% stake and provide an additional funding of Rs 35 crores via CCDs (compulsorily convertible debentures) in the new company. The CCD will convert to equity either after 10 years or at a 25% discount to any 3rd party valuation of new company whichever is earlier.
Following the announcement, CE Info Systems' shares were hammered over 12% in two sessions last week as the move faced criticism from analysts due to concerns over transparency and potential conflicts of interest.
In a swift reversal, the company announced today it 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.
"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% of MapMyIndia's revenues. These segments also continue to represent a significant growth opportunity for the foreseeable future, according to the press release.
C E Info Systems is India's leading deep-tech digital map data, geospatial software and location-based IoT products, platforms, solutions and APIs company, offering proprietary digital maps as a service ("MaaS"), software as a service ("SaaS") and platform as a service ("PaaS").
On a consolidated basis, net profit of C E Info Systems declined 8.20% to Rs 30.33 crore while net sales rose 13.82% to Rs 103.67 crore in Q2 September 2024 over Q2 September 2023.