Flipkart is said to be eyeing a stake in MapmyIndia. The e-commerce company is reportedly said to be ready to buy a majority stake in the mappy company by shelling out around $60 million or Rs 400 crore.
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According to ET, MapmyIndia’s investors are looking for an exit, while Flipkart’s interest in the mapping company is to improve its own logistics and customer analytics. Since its inception in 1992, MapmyIndia has raised around $30 million in funding from investors like Lightbox Ventures, Nexus Venture Partners, Qualcomm Ventures, and Japan-based Zenrin. Also Read - Flipkart Year End Sale is now live: Best deals on Poco C31, iPhone 13, Vivo T1 44W and more
MapmyIndia founder and CEO Rakesh Verma confirmed the fact that the investors were looking for an exit, but wouldn’t be drawn into commenting on a potential deal with Flipkart. “The financial investors have around 25 percent stake and it is correct they are looking at an exit,” Verma told the publication. “We are an independent company and will remain independent.” Also Read - PhonePe officially separates from parent company Flipkart
While initial estimates for Flipkart’s deal with MapmyIndia are believed to be around Rs 400 crore, ET says it could rise to up to Rs 500 crore as well. It is not surprising to see Flipkart interesting in a stake in the mapping company because of the rich location data it has, especially when it comes to smaller towns, which would aid its logistics and last-mile delivery operations.
The e-commerce company recently raised around $700 million or Rs 4,500 crore, at a valuation of $15 billion.
