E-commerce company Flipkart is set to acquire a 34% stake in India-based digital map provider MapmyIndia in a deal that values MapmyIndia at about $260m, the Economic Times has reported.
The valuation would place Flipkart’s investment at roughly $87m. It will invest $5m directly, while the other $82m will be used to buy out existing investors Lightbox and Nexus Venture Partners, according to filings with India’s Ministry of Corporate Affairs.
Founded in 1992, MapmyIndia provides a range of digital mapping services, including global positioning system navigation, geographical information, tracking, and location-based apps and services.
Flipkart aims to use MapmyIndia’s technology to strengthen its logistics network, and in particular its first-mile pickup and last mile delivery capabilities.
MapmyIndia’s data will also help Flipkart better understand its customer behaviour, which will in turn inform the placement of its hyperlocal distribution and warehouse centres.
Flipkart will gain two seats in the transaction and they are expected to be taken by its senior vice president of engineering, Hari Vasudev, and Surojit Chatterjee, its head of consumer experience and growth.
MapmyIndia had reportedly raised about $30m prior to the Flipkart investment from Qualcomm Ventures, which invests on behalf of US-based chip maker Qualcomm, and Japan-based mapping company Zenrin, both of which will remain as investors, as well as Nexus and Lightbox.