MapMyIndia Projects Rs 1,000-Crore Revenue Milestone In Four Years

CE Infosystems Ltd., the technology firm known for MapMyIndia platform, is bullish about its Internet of Things led business and its maps business after a strong first quarter result.

The company’s IoT-led business is likely to pick up in the second half of fiscal 2025, according to Rohan Verma, chief executive officer and executive of MapMyIndia.

The year has gotten off to a good start as the company crossed Rs 100-crore milestone in terms of revenue, Verma told NDTV Profit.

“It was a good quarter, the year has gotten off to a good start, we crossed Rs 100 crore in revenue. We are an annual business so, quarter-on-quarter can be lumpy. If you look at our open order book, we started the year with Rs 1,300 crore. We are well on track to our milestone which is Rs 1,000 crore plus by FY27-28,” he said.

Verma also talked about the ramp down in some of the company’s original equipment manufacturing business. “We have been talking about it for a few quarters that certain of our OEM programs will be ramping down, but already new programs have begun ramping up in Q2FY25,” Verma said.

The company’s IoT-led business was affected by slow hardware sales. However, they will pick up in the second half of the current financial year, he said.

“Two big legs to our biz map led and IoT led, SaaS income in IoT biz grew 90% YoY and that’s what the focus was in Q1," he said.

The first and second quarter are usually slow for IoT in terms of new hardware sales. That’s what will pick up significantly in the second half of the year, according to Verma.

"This ability for us to increase our margins based on high margin SaaS income, shows that there’s strength in the IoT-led SaaS business."

MapMyIndia secured a Rs 400-crore contract from Hyundai and Kia Motors in January 2024, the top executive said. In the past month, all Hyundai and Kia vehicles have switched to MapMyIndia’s navigation software, he said.

“Hyundai and Kia is a super exciting opportunity for us, great customers. They (Hyundai and Kia) are one of the most advanced auto cos in India when it comes to tech. They have fully aligned when it comes to connected vehicles, embedded navigation etc. We have a close partnership with them. Over the course of the last month or two, all Hyundai Kia vehicles have switched to MapIndia or Maplls,” Verma said.

MapMyIndia’s technical outsourcing expenses grew 50% year-on-year in Q1 FY25. It's better to have such an expense rather than increasing the fixed cost base of the company, he said.

Margins are quite strong at 42%, so the cost increase of technical services outsourcing is for certain activities, Verma said. "We want to outsource especially when it is somewhat revenue linked and for certain types of customers and certain types of projects."

"Sometimes it's better to have that type of expense rather than increase the fixed cost base unnecessarily for the company. So it's calibrated and it is something which keeps us in a comfortable mode for our margin structure,” Verma said.