MapmyIndia’s board has approved raising up to INR 500 Cr via QIP and the company will now seek shareholders’ approval for the issuance
MapmyIndia reported a 30.4% year-on-year rise in its profit after tax to INR 33.1 Cr in the September quarter of FY24
Last week, traveltech SaaS startup RateGain announced the completion of INR 600 Cr capital raise through the QIP route
Listed mapping and geotech startup MapmyIndia is looking to raise up to INR 500 Cr by issuing equity shares through a qualified institutional placement (QIP).
In an exchange filing on Monday, MapmyIndia said its board has approved the “raising of funds by way of issuance of such number of equity shares having face value of INR 2 each of the company, for an aggregate amount not exceeding INR 500 Cr or an equivalent amount thereof by way of qualified institutional placement (QIP)”.
A QIP allows listed Indian companies to raise funds in the domestic market by selling shares to qualified institutional buyers (QIBs).
MapmyIndia would now require the approval of the shareholders for the QIP. In the filing, the company also said that it would form a QIP committee to conclude the fundraising effort.
MapmyIndia reported a 30.4% year-on-year (YoY) rise in its profit after tax (PAT) to INR 33.1 Cr in the September quarter (Q2) of the financial year 2023-24 (FY24), helped by positive momentum across business verticals.
Its EBITDA stood at INR 40.5 Cr during the quarter under review as against INR 30.6 Cr in Q2 FY23.
MapmyIndia went public in an IPO worth INR 1,040 Cr in 2021. The startup competes with Google on the maps and geospatial data front in India, having teamed up with companies such as Ola to offer mapping services.
Speaking at Inc42’s The Makers Summit 2023, the company’s CEO Rohan Verma said it would take on Google in the B2C space starting FY24. “We’ve built a consumer app, and the challenge on the consumer side is to get the product into the hands of many consumers,” he added.
According to Verma, the company has two offerings for B2C users – the s Mappls app and the Mappls gadget ecosystem.
These gadgets include CarEye, a dashcam which allows users to monitor their vehicles remotely via the Mappls app, infotainment systems, and a heads-up display helmet for two-wheeler riders, Navisor. Besides the smart helmet, MapMyIndia also offers trackers for vehicles, dashcams, and audio-video navigation systems.
Meanwhile, MapmyIndia’s decision to go for a QIP issue comes days after another new-age tech company, RateGain, decided to take the same route to raise funds. Last week, the traveltech SaaS startup announced the completion of INR 600 Cr capital raised through the QIP route.