MapMyIndia cancels investment in CEO Rohan Verma’s startup, to shift focus to…
In an unexpected turn, MapMyIndia has announced that it will not proceed with its planned investment in the startup founded by its outgoing CEO, Rohan Verma. The decision, revealed on December 9, follows a shift in the company's strategy concerning its business operations.
MapMyIndia's Board of Directors stated that it would no longer make any equity or debt investment in Verma's new venture. "The Board has decided to recalibrate its investments in the B2C segment while continuing to evaluate other opportunities in this space," the company said in an official statement. This shift comes after MapMyIndia had previously approved an investment plan to inject Rs. 35 crore through compulsorily convertible debentures (CCDs) into the startup, which would have secured a 10 percent stake.
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The company's announcement caused a notable rise in its stock price, with shares closing nearly 16 percent higher at Rs. 1,910, up from Rs. 1,646.60 at the previous session's close. The decision to withdraw the investment came late in the market session, following a filing with the Bombay Stock Exchange (BSE).
Rakesh Verma, Chairman and Managing Director of MapMyIndia, emphasized that both the November 29 and December 9 decisions were made with the company's and shareholders' interests in mind. "These steps have been taken to ensure the best outcomes for the company and its shareholders, including minority shareholders," he said.
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Looking ahead, MapMyIndia will focus on strengthening its presence in the B2B and B2B2C segments, which account for over 99 percent of the company's revenue. These areas are seen as critical for future growth, as outlined in the company's statement.
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Initially, the company had planned
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