TopShareBrokers.com Logo
FREE Account Opening + No Clearing Fees + Rs 999 API Access
Loading...
MapmyIndia IPO  Fundamental Analysis

Key Business Highlights

  • Incorporated in the year 1995, MapmyIndia is a data and technology products and platforms company, offering proprietary digital maps as a service (MaaS), software as a service (SaaS) and platform as a service (PaaS).
  •  The Issuer provides products, platforms, application programming interfaces (APIs) and solutions across a range of digital map data, software and IoT for the Indian market under the (MapmyIndia) brand, and for the international market under the (Mappls) brand.
  • The Issuer had serviced over 2,000 enterprise customers since its inception as at the end of H1FY22. MapmyIndia had over 500 customers on our SaaS, PaaS and MaaS platforms during FY21 and H1FY22. Its customers include marquee and renowned global tech giants, new-age consumer internet technology companies, leading automotive manufacturers, large businesses across industry segments such as BFSI, telecom, FMCG, industrials, logistics and transportation, and key government organisations. The customers include PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress and GSTN.
  • Increased adoption of navigation, connected, autonomous, shared and electric mobility technologies in the automotive sector, and of our IoT and telematics technologies in the mobility, transportation and logistics sectors aids the company’s business growth.
  • Digital maps of the Issuer cover 6.29 million kilometres of roads in India, representing 98.50% of India’s road network which was 6.39 million kilometres as at March 31, 2019 on a provisional basis as per the Annual Report of the Ministry of Road Transport & Highways, Government of India for the year 2020–2021. The digital map data provides location, navigation, analytics and other information for 7,933 towns, 6,37,472 villages, 17.79 million places across many categories such as restaurants, retail shops, malls, ATMs, hotels, police stations, electric vehicle charging stations etc., and 14.51 million house or building addresses.
  • Majority of revenues are derived from B2B and B2B2C enterprise customers. The revenue model is to charge the customers fees per period on per vehicle, per asset, per transaction, per use case or per user basis, as applicable. Revenue arrangements with automotive OEMs typically envisage payments on a per vehicle basis for the contract period and top-up payments for internet services as subscription charges. For C&E customers, payments are typically received on a per geospatial transaction (or API query) basis, i.e. when the feature requiring a geospatial element is used by an end consumer, for instance, a search result for the nearest service centre or merchant.
  • When the geospatial queries are not specified or known, the customers are charged on a fixed price per term on a per use case basis. For Move IoT devices, payments are typically received for the sale of devices and subscription fees which are periodic in nature. Accordingly, such payments take the form of subscription fees, royalties or annuities for licenses and usage rights to our proprietary digital MaaS, PaaS and SaaS offerings.

Product Portfolio

  1. Digital Maps and Geospatial Data Products: The Issuer provides foundational and comprehensive digital maps across India. The advanced maps represent the real world in 2D and 3D; it provides photo-realistic virtual reality  and augmented reality ready maps of the outdoors and indoors, including geo-referenced 360-degree panoramas. These are capable of providing accurate details about the physical world, including roads and buildings, for autonomous safety vehicle platforms and smart city planning and simulations. Maps are dynamic and update continuously in near real-time, including for place updates, location-based events, changes in road conditions, location-based safety alerts, live traffic and weather.

    Geospatial data products include location-based demographics, population density, income distribution, anonymised and aggregated people movement behaviour and other location-based datasets to enable various analytics use cases.

  2. Map, Location and Navigation Platforms: API platforms  are primarily used by entities that develop applications comprising a geospatial requirement or element, for instance, to locate specific service centres, ATMs or other such locations.
  3. GIS, Geospatial Analytics and Geo-AI Products and Platforms: These consist of location-based APIs capable of ingesting, processing, publishing, visualising and analysing geo-spatial data to provide locations. Geo-analytics offerings help customers across industries to analyse their respective markets and develop predictive models through spatial patterns provided by MapmyIndia.
  4. Location-based IoT (basically physical devices integrated with software to connect with each other over the internet to exchange information), Fleet and Workforce Automation Products and Platforms: These offerings enable connectivity with real world sensors, phones and IoT devices. It provides a wide range of applications for near real-time vehicle and asset tracking, geo-fencing alerts, historical movement and driver behaviour analysis, predictive vehicle health alerts, as well as fleet, transport and logistics management. ‘Workmate’, one of the company’s software platforms, enables workforce and workflow management, monitoring and automation capabilities. These offerings are used by customers as B2C service providers to provide location-based data to their end consumers, for instance, phone or other service centres, courier centres etc.
  5. Developer APIs and SDKs: The Issuer offers a large catalogue of APIs and SDKs, to help developers integrate the features, functionalities and capabilities map, geospatial and IoT products and platforms into their own web and mobile applications. These are typically used by independent software developers for geospatial SDKs and/or features, such as locations of COVID vaccination centres, which they integrate into their products, including their consumer-facing apps, built-in to their vehicles and IoT devices, or for their internal enterprise digital systems.
  6. ‘MapmyIndia Move’ App, Websites and ‘Move’ Gadgets: These comprise our B2C offerings. ‘MapmyIndia Move’ app is a super app for maps, navigation, tracking, safety, mobility and other features, and is available on the Android and iOS platforms, as well as an internet mapping portal, Maps.mapmyindia.com. MapmyIndia Move IoT gadgets include GPS tracking, safety and navigation features.
  7. N-CASE Automotive and Mobility Tech Solutions Suite: N-CASE stands for Navigation, Connected vehicle, Autonomous safety and advanced driver assistance systems, Shared mobility and Electric mobility. These are typically used by automotive OEMs, including two-wheel, four-wheel and commercial vehicles.
  8. Location-powered Consumer Tech and Enterprise Digital Transformation: MapmyIndia provides a full-stack suite of APIs and solutions to consumer technology companies and enterprises, such as banks and financial institutions, travel companies etc., that are looking to digitally transform their offerings by providing a complete range of digital maps, geospatial software and location-based IoT.

Financial Review of MapmyIndia

Revenue from operations comprises the following: (i) revenue from sale of IoT products; and (ii) sale of map data and software (combined) through royalty, annuity, subscription and software services. The total revenues for H1FY22 were Rs 122.58 crore and the Issuer posted profits of Rs 46.77 crore for the same period which is a huge increase (Rs 17.86 in H1FY21, previous corresponding quarter)

The total revenues increased by 17% in FY21 to Rs 192.27 crore from Rs 163.48 crore in FY20. But it should be noted that this was derived from an increase in other income by 168% which was again offset by decrease in revenues by 37% from sale of IoT products due to the pandemic. During the same period, revenue from sale of map data and software increased by 9%. PAT increased to Rs 59.43 crore in FY21 against Rs 23.20 crore in FY20 due to fall in employee related expenses and other expenses. Profitability margins have been strong for all the last three fiscals.

Total revenues for FY20 increased slightly to Rs 163.48 crore from Rs 163.33 crore. During FY20, revenues from sale of IoT products reduced by 42% and revenues from map data and software rose by 28% when compared to FY19. PAT reduced to Rs 23.20 crore in FY20 against Rs 33.57 crore in FY19.

Debt is negligible and return on net worth is 11.52%, 16.60%, 7.79% and 11.77% for H1FY22, FY21, FY20 and FY19 respectively.

Table 1 - Financials and Ratios (Amount in Rs Crore)
Title H1FY22 FY2021 FY2020 FY2019
Total Revenue 122.58 192.27 163.48 163.33
PAT 46.77 59.43 23.20 33.57
EBITDA 67.80 91.23 44.21 53.58
Total Assets 465.96 426.86 357.83 339.26
Cash generated from operations 17.95 83.28 26.73 26.81
EBITDA Margin 55.31% 47.45% 27.04% 15.79%
Net Margin 38.15% 30.91% 14.19% 09.90%

Valuation and Peer Comparison

The Issue is priced at 58.83x with annualised EPS of 17.56 as at the end of H1FY21 calculated at the upper price band of Rs 1033 per share. P/BV is 13.54 at NAV of 76.28 as at the end of H1FY22. P/E is 303.82 with EPS of 3.40 as at the end of FY21 which indicates exorbitant pricing of the Issue though there is no comparative number. The Issuer has no listed peers as per the RHP. However, global peers like HERE technologies, Tom Tom, Mapbox, Google maps and ESRI and Trimble do exist. A brief comparison of global peers on their business profile and financials has been produced below.

Table 2 - Global Peer comparison:
Particulars Tom Tom Here Tech MapBox Google Maps ESRI Trimble MapmyIndia
Products offered Devices, Digital map, software and Services Devices, Digital Map, Traffic management solutions, software and services Digital map Google APIs GIS, Mapping Products, Geo enabled products, Location Analytics Geospatial Construction, Agri, Transport & Logistics, Telecommunications Map and data, API, SDKs, GIS Analytics, AI, IoT, Navigation
Key Customers Uber, Verizon, Fiat, Volkswagen, Microsoft BMW, Volkswagen, Mercedes NY Times, Snapchat, Xiaomi, Land Rover NA AT&T, Clearwater Seafoods, Red Bull Warren Averett, LLC and others Apple Inc, Honda Motors India, Amazon.in, MG, PhonePe
Revenue (USD mn, 2020) 618 1002.7 NA 1,82,520 1730 3140 -
EBITDA (USD mn, 2020) -329.4 -249.2 NA 40260 NA 390 -

The Issue Snapshot

MapmyIndia IPO opens on 9th Dec amounting to Rs 1040 crore (100% OFS) with price band of Rs 1000-1033 per share. Minimum application amount is Rs 14462 and the offer closes on 13th Dec. Retail quota is 35% and is expected to list on 21st Dec 2021.

Conclusion and Investment Strategy

As governments and businesses across the globe are making efforts to digitize their operations, the choice of map service partners is expected to mainly depend on factors like the capability of map service providers to offer localized, highly focused and updated map data. The selection of the right map solution also depends on the comprehensiveness offered by the solution provider.

Although, the map services industry is largely dominated by several global players like Google and TomTom. Companies like MapmyIndia also scores well on several aspects as it has a comprehensive set of offerings ranging from digital maps, map-based navigation systems, relevant APIs and SDKs, map integration capabilities and map data analytical capabilities which are increasingly becoming critical for businesses who want to elevate their map data for better business operations and to provide seamless experience to their customers.

MapmyIndia offers a comprehensive, detailed, and accurate digital map database for India, and the widest range of location-powered software and IoT- enabled technologies. The Issuer has emerged as a niche player in India and is capitalizing on an early mover advantage. The negatives of the Issuer are that its purely an offer for sale, and concern over its sustainability of margins in the future. The IPO has a strong GMP as of today 8th Nov 2021 though it is subject to change as per the market conditions. Hence considering all the above factors one may subscribe to the Issue.

Reviewer recommends Subscribe to the issue.

Review By CA Priyanka Choudhary on 29th Nov 2021

Review Author

About CA Priyanka Choudhary

CA Priyanka Choudhary, a freelance chartered accountant

Priyanka Choudhary Jain is a Chartered Accountant and an experienced credit analyst. She has worked with CRISIL as Senior Credit Analyst on ratings assignments including business and financial analysis in Corporates as well as the Public Finance Sector.

Email: [email protected]

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.


Reference Topics


User Reviews

No feedback found for this broker. Be the first to post the review.

Request CallbackOpen Demat Account