Magicpin - The Success Story of the Online Business Discovery and Rewards Platform

Exactly when smartphones became the devices that could do everything, the users started feeling the need to be excited and well-informed about the entertainment activities happening in their locality. Besides, with the world summed up on their mobile devices, they also began to search and explore what they could do and where they could go nearby.

Furthermore, they also started to filter the results on the basis of cost. All these searches have just multiplied over time, and with not many apps that are equally smart and convenient for the users, Magicpin was started by two brilliant minds.

Magicpin was co-founded by Anshoo Sharma and Brij Bhushan in 2015, and it is a major participant in hyperlocal retail. The platform, which links companies of all sizes with consumers, flourishes in the digital sphere and promotes mutual development. By using creative solutions, Magicpin enhances the purchasing experience and becomes a significant player in the dynamic world of online commerce.

Read to learn more about Magicpin, its founder, business model, revenue model, and more.

Magicpin - Company Highlights

Magicpin - About
Magicpin - How does it work?
Magicpin - Industry
Magicpin - Founders and Team
Magicpin - Shareholding
Magicpin - Mission
Magicpin - Name, Tagline and Logo
Magicpin - Product and Service
Magicpin - Business Model
Magicpin - Revenue Model
Magicpin - ESOPs
Magicpin - Challenges Faced
Magicpin - Funding and Investors
Magicpin - Growth
Magicpin - Advertisements and Social Media Campaigns
Magicpin - Awards
Magicpin - Competitors
Magicpin - Future Plans

Magicpin - About

To put it simply, Magicpin is an online location intelligence platform that allows users to discover restaurants, fashion stores, spas, and fitness centers in nearby areas. Headquartered in Gurgaon, Haryana, Magicpin is a platform for merchants and brands to engage and provide personalized offers to their customers.

Magicpin - How does it work?

Magicpin functions as a versatile platform that offers a dynamic user experience in addition to transactions. A thriving community is fostered by users receiving acknowledgment through likes, comments, and follows based on local activities. Customers are encouraged to spread the word via the referral chain, which highlights the distinctiveness of the platform. By promoting popular events and activities nearby, Magicpin keeps users interested while facilitating discovery.

It encourages off-peak transactions, makes it easier for new and established shops to acquire potential customers, and gives savings through rewards programs that are specifically created. Magicpin ensures frequent returns by improving client engagement with clever offers. Essentially, Magicpin changes the transactional environment into a dynamic ecosystem that is advantageous to both customers and retailers.

Magicpin - Industry

The ecommerce market is expected to increase significantly, with sales expected to reach $59.25 billion by 2024, according to a Statista report. An expected 11.45% annual growth rate from 2024 to 2029, which would result in a projected market volume of $101.90 billion by 2029, supports this encouraging trend even further.

These forecasts demonstrate the e-commerce industry's enormous potential, which is being fueled by changing customer tastes and technological advancements. In the years to come, there will be plenty of opportunity for innovation and growth in the e-commerce sector as companies continue to adjust to customer behaviors and digital trends.

Magicpin - Founders and Team

Magicpin is co-founded by Anshoo Sharma and Brij Bhushan.

Anshoo Sharma

Magicpin Co-Founder and CEO Anshoo Sharma had more than 15 years of professional experience in investing, consulting, and tech roles across India and the USA when he founded Magicpin. He was the second person on Lightspeed's India team, where he spent close to 6 years and led or was actively involved with nine investments.

Anshoo was at Bain & Co. for around four years before Lightspeed. He joined Bain in Boston and was a part of Bain's early team in India, where he was an advisor consultant. Anshoo has graduated from IIM-Ahmedabad, and before that, he was working at Motorola and Hughes Software (Aricent) in product and technology roles for 3 years. Outside of work, he enjoys spending time with family, driving, music, and movies.

Brij Bhusan

Brij Bhusan Co-Founder of Magicpin, had spent a large part of his professional life where he was closely involved in the start-up ecosystem with Nexus as an investor and leadership role at an early stage start-up before that. Even he spent around 4 years at Bain & Co.'s India and USA office after graduating from IIM Bangalore and had been in technology-related roles before that.

Brij is quite passionate about problem-solving and building things from scratch. Outside of living his dream of building Magicpin, he likes to spend time with his family, followed by traveling and reading.

Abhishek Awasthi is a founding member of Magicpin who was closely aligned with the team soon after the company was founded. Awasthi was serving as the Senior Vice-President of the company till August 2022.

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Magicpin - Shareholding

Magicpin shareholding as of May 2024 (source: Tracxn):

Magicpin - Mission

The company's mission on its website states as "to redefine hyperlocal retail."

Magicpin - Name, Tagline and Logo

Magicpin's tagline is "Local Savings SuperApp."

Magicpin's legal name is "Samast Technologies."

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Magicpin - Product and Service

Magicpin has various products and services; some of the prominent ones are:

Velocity

Magicpin, a hyperlocal delivery firm, has launched its delivery-as-a-service vertical, Velocity, to handle 100,000 orders per day, as per a news report from March 13, 2024. With 5,000 orders handled daily, the company wants to address the issues in the fragmented logistics market, where uneven demand patterns have prevented anyone third-party logistics (3PL) supplier from becoming the market leader.

45-minute pharmacy delivery service

In an effort to expand into new markets, Magicpin introduced a 45-minute nationwide pharmacy delivery service for hyperlocal retail on June 1, 2022. The service's quick delivery and user-friendly interface are intended to raise the bar for the pharmacy industry.

Magicpin - Business Model

The foundation of Magicpin's business model is finance, mostly from brands and retailers. Through customized offers, the platform provides a means for brands and merchants to interact with customers.

For businesses produced with Magicpin, they pay a per-transaction cost in addition to a platform fee. The company highlights that it is a technology- and data-driven enterprise and that it has a capital-efficient cost structure that allows it to scale operations to a large customer and merchant base without experiencing severe cost inflation.

By documenting the amount spent and the things eaten, Magicpin's back-end technology tracks users' purchasing habits by analyzing bill invoices that have been uploaded. By contributing their local experiences through image tales in a variety of categories, users earn 'Magicpin points' for their efforts on the network.

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Magicpin - Revenue Model

Magicpin makes revenue from different resources; some of the prominent ones are:

Revenue from Voucher Details:

Success for Magicpin comes from making coupon purchases easier and providing savings that can be redeemed at other retailers. This improves customer satisfaction while also increasing revenue and streamlining the user experience.

Partnerships Based on Commissions:

In exchange for facilitating transactions, Magicpin works with brands and retailers, receiving commissions. For all parties, this guarantees a consistent and lucrative cash stream.

Marketing, advertising, and promotion

Magicpin uses consumer data to provide tailored advertising, increasing merchant visibility and encouraging one-time and ongoing business transactions.

Magicpin - ESOPs

Magicpin has announced a major expansion in its Employee Stock Ownership Plan (ESOP) Scheme of 2015, increasing the amount of ESOP options from 1,76,520 to 3,89,580, according to a news report dated January 28, 2022. The ratio of these ESOP options' exercisability into equity shares is 12:1, which means that 12 ESOP options can be exchanged for one equity share.

Due to this growth, Magicpin's ESOP pool's value increased by an astounding 120%, from INR 98.4 crore to INR 217.17 crore, as determined by Inc42. This action demonstrates Magicpin's dedication to rewarding and motivating its staff members while also recognizing their critical role in the expansion and success of the business.

Magicpin - Challenges Faced

Magicpin faced a significant difficulty in its early stages when it came to collecting payments from retailers. In order to solve this problem, the company came up with a clever plan that involved giving retailers access to receipts, which served as concrete proof of the revenue produced by its platform.

This strategy had two benefits: it demonstrated the value Magicpin provided to retailers by bringing in revenue, and it was essential in establishing mutual respect and cooperative partnerships. The successful completion of this task constituted a turning point in Magicpin's development and the formation of strong, mutually beneficial alliances with the companies it works with.

Magicpin - Funding and Investors

Magicpin has raised a total of $104.9 million in funding over 9 rounds.

Here are the funding details:

Magicpin - Growth

Magicpin, growth highlights are:

• It has 1 million+ stores across 1,000 localities as of February 2024
• It has done 100 million+ retail transactions starting 2018 as of February 2024
• Magicpin does 300K+ transactions daily as of February 2024
• It has 6 million+ engaged users as of February 2024
• The user spends average 27 min+ active time/day as of February 2024

Financials

Expenses

Magicipin's total expenses rise from INR 319 crore in FY23 to INR 429 crore in FY24.

EBITDA

Magicpin - Advertisements and Social Media Campaigns

Magicpin's Fashion Frenzy Promotion Campaign. This carefully selected event has exceptional discounts from surrounding retailers and is geared toward the discerning consumer looking for both style and savings, as shown in the campaign video.

Magicpin - Awards

Magicpin confirmed its position as a leader in the retail industry by winning the prestigious Magicpin Retail Champs award in 2023. This award highlights Magicpin's commitment to quality and creativity in customer service and is a major turning point in the company's development into a retail champion.

Magicpin - Competitors

Some of the top Competitors of Magicpin are:

• Nearbuy is seen as one of Magicpin's top competitors. Nearbuy was founded in 2010 and is headquartered in Gurgaon, Haryana, India.
• The BlueBook is one of Magicpin's top rivals. The BlueBook was founded in 2012, and its headquarters is in Bangalore, Karnataka. Like Magicpin, The BlueBook also works within the Application Software industry.
• Little is a Private company that was founded in 2015 in Bangalore, Karnataka. Little also works within the Application Software field, just like Magicpin.

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Magicpin - Future Plans

Magicpin hopes to transform hyperlocal delivery by providing unmatched efficiency and speed with the release of its Velocity platform. Magicpin sets the benchmark for flawless delivery experiences with its 30-minute delivery guarantee, live worker tracking via maps, and real-time order status information. Although the platform processes 5,000 orders a day at the moment, it aims to handle over 100,000 orders a day by increasing this number tenfold.

Magicpin's ambitious aim is indicative of its commitment to improving its service offerings and meeting the changing needs of its clientele. Magicpin has the potential to revolutionize hyperlocal delivery with Velocity, achieving unprecedented levels of ease and delight.

Magicpin - FAQs

What is Magicpin?

It is an online location intelligence platform that allows the users to discover restaurants, fashion stores, spa, and fitness centers in the nearby areas.

How does Magicpin make money/Magicpin Business Model?

Magicpin's business model is mainly funded by merchants and brands. They use the platform to provide personalized offers to their customers. They pay a recurring platform fees and a per transaction charge for the business that Magicpin drives to them.

Who are Magicpin's Competitors?

Nearbuy, Bluebook, Little are the top competitors of Magicpin.

What is the use of Magicpin?

It is a free Android app for discovering and earning great cashback and free recharge on shopping bills at restaurants, beauty salons, spas and fashion outlets.

Who is the owner of Magicpin?

Magicpin was co-founded by Anshoo Sharma and Brij Bhushan in 2015.