• Sat. Jun 22nd, 2024

Magicpin :Success Story

ByNishat Manzar

Dec 2, 2023

Magicpin, a pioneering company dedicated to promoting local retailers across various industries, including grocery stores, fashion, and food establishments, has positioned itself as a significant force in the market. Headquartered in Gurgaon, Haryana, Magicpin was co-founded in 2015 by Anshoo Sharma and Brij Bhushan, two visionaries with extensive backgrounds in business and technology.

Founders’ Backgrounds:

Anshoo Sharma, the Co-founder and CEO of Magicpin, brings more than 15 years of expertise in consulting and investment in both the Indian and US markets. A graduate of IIM Ahmedabad, Sharma honed his skills in product and technology roles at reputable companies such as Motorola and Hughes Software before venturing into the creation of Magicpin.

Brij Bhushan, the COO and Co-founder of Magicpin, has devoted a significant part of his career to the startup ecosystem. With experience in both investment and leadership roles at an early-stage startup with Nexus, Bhushan is an alumnus of IIM Bangalore. His passion for creating solutions from scratch and solving complex problems has been a driving force behind Magicpin’s success.

Funding Achievements: Magicpin has successfully raised $104.8 million in a total of nine funding rounds. Notably, on November 10, 2021, the company secured a significant investment of $60 million from Zomato in its latest funding round. Prior to this, Magicpin raised $3 million in a venture round led by Ritesh Agarwal, the founder of Oyo, through his personal special purpose vehicles (SPV), RA Holding.

Impressive Growth and Market Presence: With a user base exceeding 6 million, Magicpin has established its presence in over 12 cities, including Delhi, Mumbai, Goa, and Jaipur. The company’s revenue averages $3 million, marking a sevenfold growth in recent years. Notably, Magicpin’s active users spend up to 70 minutes daily engaging with the app.

Adapting to Changing Needs: In response to the evolving market dynamics during the pandemic, Magicpin demonstrated its commitment to community well-being. Partnering with last-mile delivery logistics companies, the company introduced essential delivery services for items such as groceries, packed food, and hygiene products. This initiative underscored Magicpin’s dedication to supporting communities during challenging times.

Magicpin’s success story is a testament to the vision and dedication of its founders, Anshoo Sharma and Brij Bhushan, who have not only created a thriving platform but have also made a positive impact on local businesses and communities nationwide.

Magicpin – Mission and Vision

At Magicpin, our unwavering mission is to transform the hyperlocal experience into something truly magical. We aspire to emerge as the ultimate platform for users seeking online information about businesses and services while simultaneously rewarding them for their engagement.

Magicpin – Business Model & Revenue Model

Anshoo Sharma, the CEO and co-founder of Magicpin, emphasizes our business model’s reliance on merchants and brands for funding. These entities leverage our platform to engage customers through personalized offers, paying a recurring platform fee along with a per-transaction charge. As a data and technology-centric company, our capital-efficient cost structure allows us to scale efficiently while providing valuable insights to both users and businesses.

Operating through a sophisticated backend platform, Magicpin meticulously analyzes uploaded bill invoices, tracking user spending patterns across various categories such as food & beverages, fashion, and groceries. Users are incentivized to share their local experiences through picture stories, earning ‘Magicpin points’ that can be redeemed for services and experiences at our partnered merchants.

For revenue generation, Magicpin charges a commission from merchants for each transaction, typically ranging between 10-12%. Additionally, we leverage our consumer data for advertising and marketing, offering merchants valuable promotional opportunities to enhance their customer outreach.

Magicpin – Shareholding

Magicpin’s shareholding pattern reflects a strategic distribution among key stakeholders, with Lightspeed India holding 44.11%, The Bunting Family private Fund LLC at 6.81%, Moonstone Investments Limited at 5.29%, and other investors accounting for 5.85%. The promoters maintain a substantial 37.9% share.

Magicpin – Funding & Investors

Having secured $104.8 million in funding through nine rounds, Magicpin boasts a diverse group of investors, including Zomato, Lightspeed, The Bunting Family, Moonstone Investments, and others. The latest funding round of $60 million from Zomato on November 10, 2021, underscores the confidence our investors place in our growth and potential.

Magicpin – Growth

With over 6 million users across 12+ cities, including Delhi, Gurugram, Noida, Bengaluru, Mumbai, Pune, Hyderabad, Chandigarh, Jaipur, Goa, Chennai, and Ahmedabad, Magicpin has experienced remarkable growth. The company has achieved a 7x growth rate over the last year, generating an average revenue of $3 million.

Magicpin actively engages a million users who have shared over 5 million experiences, spending an impressive 70 minutes on the app daily. Collaborating with major retailers such as McDonald’s, Hard Rock Cafe, and KFC, Magicpin has diversified its user base, with 25% of business contributed by larger retailers and 75% by smaller merchants.

During the pandemic, Magicpin adapted to the changing landscape by facilitating essentials delivery through partnerships with local retailers and last-mile delivery logistics firms.

Expenses for Magicpin increased from Rs 192 crore in FY21 to Rs 384 crore in FY22, reflecting our commitment to growth and innovation.