In a surprising turn of events, MapmyIndia’s parent company, CE Info Systems, has decided not to go ahead with its planned Rs 35 crore investment in a new business-to-consumer (B2C) venture led by the company’s outgoing CEO, Rohan Verma. The decision comes after concerns raised by the minority investors of MapmyIndia, despite the approval from the company’s board.
Rohan Verma, who will be spearheading the new venture, confirmed that while CE Info Systems will not be making the anticipated investment, he will instead fund the project independently. Despite the pullback on the investment, Verma emphasized that the parent company will retain a 10% equity stake in the venture, ensuring its involvement in the project’s future success.
The original plan for CE Info Systems to invest in the venture was part of the company’s strategy to expand into the B2C space, capitalizing on its strong brand presence in the mapping and geospatial technology market. However, following discussions with minority investors, concerns surrounding the strategic direction and the risk profile of the new venture led to the withdrawal of the Rs 35 crore investment.
Verma, who is known for his leadership at MapmyIndia, stated that despite the challenges, the venture will proceed with his personal funds backing the initiative. He expressed confidence in the business’s potential, asserting that the new venture would build on MapmyIndia’s established strengths in location intelligence and digital mapping technology.
“I’m committed to seeing this venture succeed and will personally invest to ensure its growth,” Verma said in a statement. “While the decision by CE Info Systems to pull back from the financial commitment is unfortunate, I believe in the potential of this new direction and look forward to bringing it to life.”
The development marks a significant shift for both Verma and MapmyIndia. As the company transitions to new leadership, it remains to be seen how this move will impact its long-term strategy and relationship with investors. The decision not to move forward with the investment, however, has raised questions among stakeholders about the future direction of the company and its upcoming ventures.
CE Info Systems, which owns a dominant share of MapmyIndia, has yet to provide further commentary on the situation, but it is clear that the company is taking a more cautious approach to new business expansions in light of the concerns raised by its minority shareholders.
Despite the change in investment plans, Verma’s new B2C venture is expected to make significant strides in the market, with the backing of his personal resources and the continued support from the parent company through its 10% stake. The coming months will likely provide more clarity on the viability and success of the venture as it launches.
