MapMyIndia - Marquee Client Base; Asset Light Model, New Orders To Command Premium Valuations: HDFC Securities

HDFC Securities Retail Research

C.E. Info Systems Ltd. (MapMyIndia), being a pioneer, has certain advantages as its digital maps and other solutions are localised for the challenging Indian Geography and are extensive in terms of coverage.

There is scope of further up selling or cross selling while the maps and platform are constantly updated with validated feedbacks which can create network effect.

The company’s strong financials are based on a sound business model. MapMyindia charges its customers, fees per period based on per vehicle, per asset, per transaction, per use case, and user. These include subscription fees, royalties, and annuities to provide licenses and usage rights to its proprietary digital metal-as-a-service, platform-as-a-service, and software-as-a-system offerings.

Since most of the company’s products, platforms, and solutions are digital, created in-house, and then deployed and delivered over the cloud, MapmyIndia as a business is asset-light, with a relatively low variable cost base.

The opportunity for the company continues to expand, as more customers across more industry verticals, become increasingly aware of more use cases and benefits of company’s mapping products, leading to increased adoption and growth.

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