Amid the rather gloomy environment that Indian public markets have been experiencing for a few days now, geopositioning tech upstart MapMyIndia, has listed at a 54% premium to its IPO price. That is a strong market debut by all means, and also a validation of how India’s investors have adapted relatively quick and with ease, to new tech companies and their business models.
Shares climbed to as high as 1,590 rupees a share before retreating to about 1,400 rupees or about 35% higher than the IPO price. Grey Market had already provided certain sense of strong market debut for MapMyIndia (CE Info systems). The shares were exchanging hands at a ₹780 premium over the issue price. What has also helped the company, is the fact that it is profitable — a rarity in new-age tech companies globally. The startup reported a 31% profit margin for the last fiscal year, with revenue of 1.92 billion rupees ($25 million) and net profit of 594.3 million rupees.
The 29-year-old MapmyIndia offers Navigation, Tracking, IoT, Analytics, and web mapping service for desktop and mobile devices, as well as advanced GPS tracking devices, car in-dash infotainment & plug & play on-board diagnostics, car trackers. It counts Apple, Amazon among many other big tech companies as its clients.
The company plans to expand after integrating maps for more than 200 countries into its software platform, Chief Executive Officer Rohan Verma said in an interview on Bloomberg television recently. That can help original-equipment makers for next generation mobility vehicles, application developers, and businesses looking for geospatial data analytics, he said.
What has also helped companies like MapMyIndia, is India’s recent policy changes with respect to mapping. Foreign mapping players in India 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. This further helps boost business for local players such as MapMyIndia, among others.
“There is a huge headroom for growth in our sector and we are very, very excited about the market,” said Verma, son of the founding couple. “We are very hopeful that this entry into the public market will increase our profile.”