MapmyIndia's revenue growth has slowed in the first half of the current fiscal year compared to FY24, following a backlash from investors that led to a 12% drop in stock value. The company withdrew a funding plan for a promoter group firm, highlighting risks associated with related party transactions. CEO Rohan Verma is departing to establish a new entity focused on the consumer business.
MapmyIndia has stirred controversy by announcing the separation of its B2C business into a new entity, which will focus on consumer technology products like apps and navigation tools. The parent company will retain its B2B and B2B2C segments, with CEO Rohan Verma transitioning to lead the new venture in March 2025. The market reacted negatively, expressing concerns that minority shareholders might be disadvantaged by this split.
MapmyIndia's recent decision to separate its B2C venture has raised governance concerns among shareholders, leading to a decline in stock prices. In response to investor apprehensions, CEO Rohan Verma announced he would personally fund the new entity, ensuring no company funds would be utilized. This move has disappointed some investors who were optimistic about the consumer-facing business's potential.
MapMyIndia's parent company, C. E. Info Systems, saw its shares drop 3% following the announcement to spin off its B2C business into a separate entity, led by current CEO Rohan Verma. The company plans to invest Rs 10 lakh for a 10% stake in the new venture and an additional Rs 35 crore through Compulsorily Convertible Debentures. Verma will step down as CEO in March 2025 but will remain on the board as a Non-Executive Director.
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