Mumbai: Mapmyindia, a maker of digital maps, is looking to raise Rs 1,200-1,300 crore through an initial public offering (IPO) at a valuation of Rs 5,500 crore, according to people aware of the matter. Draft papers are likely to be filed by next week.
PhonePe, which is one of the investors in MapmyIndia, and promoters will sell part of their stake in the IPO that will also include an issue of fresh shares, one of the people said. “They are expecting to hit the streets post-Diwali.” The company has appointed investment banks Kotak Mahindra Capital, Axis Capital and JM Financial to manage the IPO, the people said.
Bloomberg was the first to report the company’s IPO plan on Sunday.
Encouraged by Zomato’s bumper public market listing, many companies—both profitable and loss-making—are looking to raise capital from the public market. Among them, Ola, Policybazaar, Droom, Paytm, Ixigo, and Nykaa are formalising their IPO plans and have hired investment bankers.
Founded in 1992 by Rakesh and Rashmi Verma, MapmyIndia dominates the automotive market, providing services to automakers such as BMW, Tata Motors, Honda and Toyota in India. It also works with companies like Ola, PhonePe, Yulu, Apple and Amazon.
According to news reports, the company posted a net profit of Rs 24 crore on revenue from operations of Rs 149 crore in the year ended March 31, 2020. Data provided by Tracxn show the company’s revenue for fiscal 2019 at Rs 162 crore against Rs 161 crore the previous year. It posted a profit of Rs 39 crore in FY19 and Rs 35 crore the year before. Between 2015 and 2017, revenue grew from Rs 115 crore to Rs 140 crore, as per Tracxn data.
The company was last valued at Rs 1,600 crore when it raised capital from PhonePe in 2015. It was previously backed by venture capital funds such as Lightbox and Nexus Venture Partners. These funds exited when PhonePe checked in.