Magicpin’s Growth Journey: From Series A to $60 Million Series D Funding

In 2015, Magicpin was established by the visionary minds of Anshoo Sharma and Brij Bhushan. Prior to embarking on this entrepreneurial journey, Anshoo Sharma and Brij Bhushan served at Lightspeed India and Nexus Venture Partners, respectively. Recognizing the burgeoning desire of smartphone users to stay both entertained and well-informed about local activities, the founders set out to create a platform that would seamlessly cater to these evolving needs.

As the omnipresence of the world unfolded within mobile devices, users not only sought information about local entertainment options but also engaged in exploration, contemplating activities and destinations in proximity. With an additional emphasis on cost considerations, users increasingly sought a comprehensive solution to fulfill their diverse requirements.

In response to this growing demand, Magicpin emerged as a sophisticated and user-friendly application. Anshoo Sharma and Brij Bhushan envisioned a platform that not only addressed the multifaceted interests of users but also provided a smart and convenient solution. Their extensive experience in the industry, coupled with a commitment to innovation, laid the foundation for Magicpin’s success.

Focusing on diverse sectors such as fashion, food & beverages, and grocery establishments, Magicpin serves as a catalyst for discovery among local retailers. The company’s commitment to excellence is further underscored by the inclusion of Deepinder Goyal, co-founder of Zomato, as an independent director. Goyal, joining the company in July of the preceding year, brings a wealth of expertise to Magicpin, contributing to its ongoing success and evolution as a pioneering force in the industry.

Company highlights

Magicpin : Mission and Vision

At Magicpin, our unwavering mission is to transform the hyperlocal experience into something truly magical. We aspire to become the premier platform for users seeking businesses and services online, all while rewarding their engagement. Our vision encompasses creating a seamless and rewarding environment, establishing Magicpin as the ultimate destination for users navigating the digital landscape in search of quality businesses and services.

Magicpin – Overview and Operational Mechanism

Magicpin is a cutting-edge online location intelligence platform headquartered in Gurgaon, Haryana, designed to empower users in discovering a diverse range of establishments such as restaurants, fashion stores, spas, and fitness centers in their vicinity. Serving as a dynamic nexus for merchants and brands, Magicpin facilitates meaningful engagement and the provision of personalized offers to their discerning customer base.

Recognition: Beyond its fundamental utility, Magicpin functions as a platform that allows users to garner followers, likes, and comments based on their preferences and interests in local activities.

Referral Chain: One of Magicpin’s distinguishing features lies in its ability to harness the power of word-of-mouth marketing. Through a referral chain, the platform encourages merchants’ customers to organically spread awareness within their local communities and social circles.

Discovery: Magicpin elevates the user experience by enabling the discovery of trending events, intriguing individuals, and pertinent activities in the users’ immediate locality, enhancing the overall appeal of the platform.

Potential Customer Acquisition: By catering to both new and established merchants, Magicpin facilitates the acquisition of potential consumers, contributing to sustained business growth.

Increase in Utilization: Magicpin strategically fosters transactions during off-peak hours, allowing merchants to optimize inventory utilization and effectively manage excess stock.

Savings: The platform introduces exclusive rewards programs through its affiliated merchants, specifically tailored to benefit Magicpin users, thereby promoting cost savings and incentivizing customer loyalty.

Enhancing Customer Engagement: Magicpin employs innovative strategies and offers to ensure existing customers return more frequently, thereby fostering sustained and meaningful customer engagement.

Magicpin – Business Model & Revenue Model

Anshoo, our spokesperson, articulates the core elements of our business model, which relies predominantly on support from merchants and brands. At the heart of Magicpin’s business model is the engagement of merchants and brands who utilize our platform to connect with their customers through personalized offers. In return, they contribute to our revenue stream by paying a recurring platform fee and a per-transaction charge, reflecting the tangible value Magicpin delivers to their businesses.

Functioning through a sophisticated backend platform, Magicpin strategically interprets and records customer bill invoices, capturing crucial data such as expenditure and purchased items. This meticulous tracking system enables us to analyze and understand user shopping patterns effectively. Users, in turn, validate their experiences by sharing picture stories across diverse categories, including food & beverages, fashion, and grocery.

The culmination of these experiences leads to the accrual of ‘Magicpin points,’ a unique reward system that empowers users to access a multitude of services and experiences from our extensive network of partnered merchants. This reward ecosystem spans various categories such as restaurants, nightlife, beauty, and fashion, enriching user engagement through visual narratives.

For revenue generation, Magicpin adopts a commission-based approach, charging merchants a percentage fee for each transaction facilitated through our platform. As of September 2017, our commission rate is established in the range of 10-12%, as reported in the news. Furthermore, advertising and marketing serve as additional revenue streams, leveraging our valuable consumer data to provide targeted advertising and promotional opportunities for merchants, thereby enhancing their outreach to customers.

Magicpin : Shareholding

Magicpin – Funding & Investors

Magicpin : Impressive Growth Milestones

As per the official website, Magicpin currently boasts a user base exceeding 6 million individuals and operates seamlessly in 12+ cities, including prominent locations such as Delhi, Gurugram, Noida, Bengaluru, Mumbai, Pune, Hyderabad, Chandigarh, Jaipur, Goa, Chennai, and Ahmedabad.

Demonstrating remarkable growth, the company has expanded sevenfold in the past year, achieving an impressive average revenue of $3 million. The platform has garnered participation from over 1 million users who have collectively shared more than 5 million experiences, contributing to the vibrant and active community on the app. Remarkably, Magicpin’s engaged user base spends an average of 70 minutes daily on the platform.

Magicpin has successfully established a substantial presence, delivering savings to its user base through a network that encompasses over 170,000 merchants across the Delhi NCR region, Bengaluru, and Jaipur.

In cultivating strong partnerships, Magicpin collaborates with major retailers such as McDonald‘s, Hard Rock Cafe, KFC, Beer Cafe, Keventers, and Subway, which collectively contribute 25% to the company’s overall business. The remaining 75% is derived from a diverse array of smaller merchants. Notably, the food and beverage sector accounts for the majority of Magicpin’s business at 60%, followed by contributions from the fashion and beauty sectors.

Magicpin : Strategic Expansion Overview

In alignment with our progressive trajectory, Magicpin is poised to intensify its market presence by delving deeper into existing territories, as opposed to broadening its geographical footprint. Presently, Magicpin has successfully established operations in prominent cities such as Delhi, Mumbai, and Bengaluru, and has further extended its reach to include Hyderabad, Pune, Chennai, Jaipur, and Chandigarh.

This strategic approach underscores our commitment to cultivating and fortifying our existing markets for sustained growth and enhanced customer engagement.

Magicpin :Product and Service Overview

In its pursuit of market expansion, Magicpin proudly introduced a nationwide 45-minute pharmacy delivery service for hyperlocal retail on June 1, 2022. This service, characterized by its swift delivery and user-friendly interface, aims to set a new standard in the pharmacy industry.

Magicpin :Competitor Landscape

Magicpin faces competition from notable industry players, including:

Note: Little is a private company that operates in the same field as Magicpin.

Magicpin : Partnerships & Tie-ups

As a local discovery and commerce platform, Magicpin has strategically collaborated with prominent brands such as McDonald’s, The Beer Café, Decathlon, Chaayos, Smaaash, and a multitude of local merchants. Notably, Magicpin has pioneered the implementation of augmented reality on its app, marking a significant milestone as the first Indian company to leverage this innovative concept for enhanced consumer engagement.

Magicpin – ESOPs

“Back in 2015, when Magicpin was still a sprightly startup, they dished out around 1,76,520 ESOP options like it was confetti at a celebration. Fast forward to January 28, 2022, and voila! The ESOP extravaganza got a 2.2X upgrade, now boasting a dazzling 3,89,580 options. It’s like Magicpin decided to sprinkle some extra magic on their employee ownership potion. Abracadabra, indeed!”

Conclusion 

In conclusion, Magicpin’s rapid growth, innovative business model, strategic partnerships, and adaptability to market trends position it as a key player in the hyperlocal discovery and commerce sector. The company’s commitment to user engagement and its multifaceted approach to revenue generation bode well for its sustained success in the evolving digital landscape.