MapMyIndia Aims for Rs 1,000 Crore Revenue in Four Years

CE Infosystems Ltd., the company behind MapMyIndia, is optimistic about its business prospects, particularly its Internet of Things (IoT) and maps segments, after reporting strong first-quarter results for FY25 as the company has achieved over Rs 100 crore in revenue. Despite quarterly fluctuations in revenue, CEO Rohan Verma mentioned that the company is on track to reach its ambitious target of Rs.1,000 crore in revenue by FY27-28.

Growth in IoT-Led SaaS Business

MapMyIndia’s IoT-led business faced challenges due to sluggish hardware sales in Q1FY25. However, Verma expects a recovery in the second half of FY25. The company’s Software as a Service (SaaS) income from IoT grew by 90% year-on-year in the first quarter, highlighting the strength of this segment. The company’s focus on high-margin SaaS income has contributed to the  margins, which currently stand at 42%.

Partnerships & Contracts

A key driver of growth for MapMyIndia has been its partnership with Hyundai and Kia Motors. In January 2024, the company secured a Rs.400 crore contract from these companies, resulting in the integration of MapMyIndia’s navigation software in all Hyundai and Kia vehicles over the past month. Verma described this collaboration as a “super exciting opportunity,” noting that both companies are at the forefront of automotive technology in the country.

Outsourcing 

To maintain its margin structure, MapMyIndia has increased its technical outsourcing expenses by 50% year-on-year in Q1FY25. The outsourcing seems to be a calibrated decision, particularly for revenue-linked activities and specific projects, to avoid unnecessary increases in the company’s fixed cost base. Additionally, MapMyIndia is navigating a transition in its Original Equipment Manufacturing (OEM) business, with some programs ramping down while new ones are beginning to pick up.

Conclusion: In conclusion, with a strong start to FY25, aligned partnerships, and a focus on high-margin SaaS income, MapMyIndia seems well-positioned to achieve its revenue target of Rs.1,000 crore by FY27-28. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.