MapmyIndia aims for ₹1,000 crore of revenue by FY27 but faces speed bumps galore

Rakesh Verma, co-founder, president and managing manager of CE Info Systems, MapmyIndia’s genitor company, told Mint in an interview, “The analytics concern is expected to turn significantly, alongside the enlargement into planetary markets, peculiarly Southeast Asia done our bureau successful Korea… We expect maturation successful the automotive, corporate, and authorities sectors, leveraging ClarityX's focused analytics capabilities."

ClarityX, an artificial intelligence-based information analytics and consulting services company, was precocious rolled retired arsenic a abstracted entity by Rakesh Verma and his chap promoter and woman Rashmi Verma, who is besides main exertion serviceman of MapmyIndia. It is headed by Rakhi Prasad, co-founder of ClarityX and non-executive manager astatine MapmyIndia.

Also read: A Google Maps rival successful India's tech revolution

Prasad told Mint, “We are leveraging MapmyIndia's narration with customers and providing them with ClarityX’s value-added offerings to assistance lick their problems. Our archetypal attack is capitalising connected each the MapmyIndia’s goodwill and lawsuit base. Initially, we volition absorption connected India."

Why is MapmyIndia branching out?

Asked wherefore the institution chose to subdivision retired into analytics, an capitalist and manufacture expert, who did not privation to beryllium named, said, “When maturation tails disconnected successful your halfway concern and it's profitable, determination is nary quality to deploy much superior into the aforesaid business. With ostentation adjacent year, maturation is mean and your contention holds immoderate portion of the market, truthful you're seeing that this has people stabilised now. So alternatively than walk wealth connected it, you'll really effort to support costs the aforesaid oregon less."

“Now for growth, you'll person to instrumentality adventurous risks successful immoderate different concern models. They are utilizing an adjacency wherever they are already serving their customers. Customers usage an analytics instrumentality oregon a consulting instrumentality to marque much consciousness of the information that Mapmyindia provides anyway, truthful they are trying to physique a work furniture themselves."

Rohan Verma, CEO and enforcement manager of MapmyIndia said, “There are galore maturation opportunities for MapmyIndia crossed each our concern areas. These are not either-or scenarios. We are doing rather good successful the mapping abstraction and successful the automotive OEM (original instrumentality manufacturer) space, and of people successful the IoT (Internet of Things) abstraction too. In addition, arsenic a institution we privation to support increasing and unlocking our imaginable crossed a scope of concern areas. And for that crushed we are seeing to it that the analytics accidental is good covered."

The roadworthy to ₹1,000 crore of revenue

Along with the analytics business, analysts astatine Goldman Sachs judge the IoT concern volition besides pb the way. “We expect the institution to support precocious margins driven by a pickup successful IoT led concern maturation (which offers much gross accidental for high-margin mapping), supported by newer opportunities successful people/goods mobility and the car aftermarket, vs the bequest car OEM business," they wrote successful a study published past week.

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“In January, MapmyIndia won a [ ₹400 crore] declaration for the adjacent 5 years from Hyundai and Kia. A pickup successful Hyundai and Kia sales, supported by premiumisation and electrification, should effect successful accelerated gross designation for the company, starting successful the 2nd 4th of FY25," the study added.

Rakesh Verma said the company has respective ample deals successful the funnel and hopes to materialise immoderate of these successful the corporate, automotive and authorities sectors.

Competition from car OEMs

In FY24 the institution recorded a full gross of ₹379 crore and a nett net of astir ₹134 crore. Goldman Sachs said successful its study that it expects gross to turn astatine a compound yearly maturation complaint (CAGR) of 38% from FY24-FY27E and a dependable Ebitda borderline successful the 38-41% range.

MapmyIndia has had immense occurrence successful providing navigation bundle to car OEMs and has a  much than 80% stock of this market. The Goldman Sachs study highlighted, however, that it faces accrued contention connected this beforehand arsenic well, with immoderate automakers looking to power to their ain mapping platforms. Ola Electric, which erstwhile utilized MapmyIndia’s maps for its built-in navigation, switched to a strategy developed in-house recently.

However, Rakesh Verma said the institution is inactive negotiating with Ola for the close terms and whitethorn person not mislaid it arsenic a lawsuit yet. “The IoT and mobility sectors are besides growing, and wins with OEMs specified arsenic Hyundai and Kia are expected to lend to gross starting from Q2 of this fiscal year," helium added.

“We are continuously moving connected the tech, and bringing successful caller tech successful our suite of products for automotive and connected services. With the mode we work, we person avoided losing our customers truthful far," helium added.

Giants proceed to predominate mapping

Meanwhile, MapmyIndia’s Mappls app, a nonstop rival of Google Maps and Apple Maps, has had its ain acceptable of challenges. MapmyIndia has been successful the integer mapping abstraction since 1995 and has offered user net mapping services since 2004. But the institution had to vacate B2C mapping and navigation aft Google utilized its dominance with Android to triumph customers successful this segment.

Mappls has astir 22 cardinal users successful India, a fraction Google Maps’ 60 cardinal progressive users successful India arsenic of December 2023.

Also read: How Google Maps solved India's thoroughfare sanction problem

“So far, we person achieved this practically without spending connected advertising. However, successful the future, we volition bash it carefully, ensuring that immoderate maturation successful the MapmyIndia app besides translates into gross from activities related to the app," said Verma. These activities see MapmyIndia gadgets, the IoT user segment, advertising, travel-related services, and collaborations with automotive OEMs, helium added.

Plenty of contention successful analytics

The caller analytics concern offers indices, instrumentality learning models and insights to lick 3 wide areas wherever customers look problems: marketplace enlargement and marketplace entry, outgo optimisation, and hazard and fraud assessment.

It whitethorn besides look stiff contention from companies of each sizes – from the Big Four consulting firms (PwC, Deloitte, EY, and KPMG) to startups.

“There are a batch of analytics and consulting firms. But are they doing worldly astir geo-mapping and tagging? Are determination immoderate specialists successful that vertical? Perhaps not, due to the fact that it's excessively niche. The concern mightiness beryllium worthy $50-100 cardinal worth, but it's ace fragmented. MapmyIndia whitethorn beryllium going aft that," said the adept quoted above.

Rohan Verma said, “The unsocial offering of the ClarityX-MapmyIndia operation gives america a chiseled borderline successful our worth proposition for customers and hence a beardown close to triumph successful this space."

Also read: EY to PwC, KPMG to Deloitte, consultancy firms are witnessing a warfare for talent

Rakhi Prasad added, “Our strategical concern gives america entree to not lone a batch of multi-dimensional static datasets but besides real-time datasets and bundle tools for visualisation and dashboarding. These tools and datasets springiness america the velocity to spell to marketplace and supply solutions to customers crossed industries."

The institution did not disclose which of MapmyIndia’s existing clients it would people this year. These clients see Hyundai, KIA, MG Motor successful the car and mobility sector; HDFC Bank, Bajaj Finance and PhonePe successful the user and endeavor sector; and the GST Network, the UP police, and the ministry of panchayati raj among others successful the authorities sector.

Promoter sells 5 lakh shares

On Wednesday, Rakesh Verma reportedly sold 5 lakh shares of the institution successful ₹115-crore artifact deal, but was speedy to adhd that this represented little than 1% of shares and that the promoters had nary volition of selling immoderate more.

“I person been doing philanthropy and investing successful startups arsenic per my committedness to an Aatmanirbhar, Sarvottam Bharat. I privation to proceed to bash truthful and for that this is the archetypal clip I americium raising funds arsenic a nationalist institution promoter, including during the clip of the IPO wherein I had not sold shares," helium said.