MapMyIndia is one of the pioneers of India’s navigation and location-based tech business, offering GPS based navigation solutions, including offline maps, and now into services such as telematics, IoT and geo-analytics services.
Incorporated twenty-six years ago, the company chose to avoid direct competition with Google Maps since its entry in 2005 and moved its focus to the enterprise business.
And last year, it started looking at challenging Google in the consumer segment again following the government’s push for ‘Atma Nirbhar Bharat’.
MapMyIndia’s consumer business is in a very nascent stage and its performance could be assessed only when the company files its annual returns for FY21.
However, in FY20, the company remained profitable but it recorded a sluggish growth in operating revenue, regulatory filings show.
The Flipkart-backed firm saw a 10% uptick in its operating revenue which grew from Rs 135.25 crore in FY19 to Rs 148.63 crore in FY20. MapMyIndia collected Rs 20.5 crore from the sale of hardware products which accounted for 13.8% of its operating revenue whereas the rest 86.2% or Rs 128.1 crore were earned through the provision of technical and analytics services.
MapMyIndia earned another Rs 14.84 crore from its financial assets during FY20.
The primary expenditure incurred by the Delhi-based company was on employee benefits which accounted for nearly 49% of the total expenses during the fiscal. These costs grew by 26.6% from Rs 50.75 crore in FY19 to Rs 64.3 crore spent in FY20.
The costs incurred in the procurement of raw material used in the manufacturing of its GPS devices decreased by 22.1% from Rs 17.2 crore in FY19 to Rs 13.4 crore in FY20. Another Rs 10.8 crore was spent on procuring finished stock in trade during the same period.
Utility payments grew by 26% from Rs 5.1 crore in FY19 to Rs 6.42 crore in FY20 while rental payments reduced to only Rs 30 Lakhs in FY20 from Rs 4.2 crore in FY19.
Legal and professional expenditure incurred during FY20 jumped by 174% to Rs 6.3 crore while repair and technical expenses incurred grew by 40.4% to Rs 3.3 crore during the same period.
Following the surge in revenue, total expenses incurred by the company have grown by 9.7% to Rs 131.8 crore in FY20 from Rs 120.2 crore spent in FY19.
MapMyIndia spent Rs 0.89 to earn a single rupee of revenue during the fiscal ended in March 2020.
While EBITDA margins have reduced by only 328 BPS to 27.035, its annual profit reduced by 32.2% to Rs 23.42 crore in FY20 from Rs 34.52 crore earned in FY19.
The financial performance of MapMyIndia in FY20 has not been impressive as its revenue grew at a slow pace whereas profits plunged by almost one-third.
Also, from an overall turnover perspective, it appears that the company hasn’t experienced significant growth in the past decade. Over the years, MapMyIndia has relied on its B2B business to drive growth. With over 5,000 overall clients, it claims to control over 90% market share in the automotive space. It counts top automakers such as BMW, Tata, Honda and Toyota as its clients.
The company now needs to stretch its horizon from the enterprise business and its re-entry into the consumer segment seems to be a move that can grow its revenue multi-fold.