The invention of smartphones has made our lives much easy. Magicpin is one such app that helps its customers in finding local retailers around the city. People can search for restaurants, gyms, spas, fashion, beauty, groceries, etc., on the app. They also offer magic points to their customers to attract them. The app helps the users in many ways and increases their businesses by connecting them to the customers. Let's get to know the success story of this startup.
Magicpin - Key Points
- Company Name - Magicpin
- Industry - E-commerce
- Founded - 2015
- Headquarters - Gurgaon, Haryana, India
- Founders - Anshoo Sharman, Brij Bhushan
- Total Funding - $37.9 million
- Valuation - $147.13 million
- Gross Merchandise Value - $1 billion
- Website – www.magicpin.in
Magicpin - Founders and Team
Magicpin got founded by Anshoo Sharma and Brij Bhushan. They have more than 10,000 employees working for the organizations. They also have a hardworking team who work together in building this company.
- Anshoo Sharman - Sharman is the CEO and co-founder of the company. He is actively involved with nine investments and has almost 15 years of experience in consulting and investing. He is an IIM-A graduate and, he worked for Motorola for three years.
- Brij Bhushan - Bhushan is the COO and co-founder of Magicpin. He is an IIM-B graduate and, he has worked for several organizations before founding this company.
- Nipun Bhatia - Nipun is the Chief of Technology Officer (CTO) in the company.
- Naman Mawandia - Naman is the head of the finance in Magicpin.
- Pranay Gupta - Gupta is the Vice President of Growth and Business Development in the company.
- Praveen Srivastava - Praveen is the Senior Vice President of Operation in the company.
Magicpin - Business Model
The magician does the job of bringing customers and merchants on the same platform. They provide personalized services and offers to their users. Magicpin charges pre-transaction charges and recurring platform fees from the retailers.
Magicpin helps in generating over 25% of the business of the merchants. The rest comes from the conventional method.
The customers upload their invoices that help the system to track the shopping pattern. It acts as a validation for customers. That is categories such as restaurants, beauty, nightlife, fashion, etc.
Magicpin - Revenue Model
Magicpin's revenue model is straightforward. They charge a commission for every transaction from the retailers.
- The rate of commission varies between 10%-12%.
- The company also earns its revenue from various promotions and advertisements. They provide such kind of service to the merchants that help them in increasing their customer base.
Magicpin - Funding and Investors
Some of the funding and investors of the company are as follows:
- $3 million - Series A Stage, Lightspeed Venture Partners, 2016
- $50k million - Non-Equity Assistance Stage, Google Launchpad Accelerator, 2016
- $7 million - Series B Stage, Lightspeed Ventures Partners, 2017
- $1 Million - Debt Financing Stage, Trifecta Capital, 2018
- $20 million - Series C Stage, Lightspeed Ventures Partners, 2018
- $3.8 million - Series C Stage, Lightspeed, Moonstone Investment, Waterbridge Ventures, The Bunting Family Pvt. Fund, 2020
- $3 million - Series C Stage, Samsung Venture Investment Corporation, 2020
Magicpin - Partners and Tie-Ups
Magicpin has launched augmented reality on their app. They are the first Indian company to use such a concept to increase engagement with customers. Some of the partners and tie-ups of the company are as follows:
- The Beer Cafe
- Taco Bell
- Indian Terrain
Magicpin - Growth and Revenue
Magicpin's revenue for the financial year 2019-2020 is $3 million.
- They have more than 5 million users.
- They are operational in 12 Indian cities - Delhi, Mumbai, Ahmedabad, Bangalore, Chandigarh, Goa, Gurgaon, Pune, Noida, Jaipur, Hyderabad, Chennai.
- Magipin's app has been downloaded more than 5 million times on the Google Play Store.
- The company has seen a growth of almost seven times the last financial year.
- The experience gets shared by more than a million people on the website and app.
- Their active members spend an average of 60 minutes on the app.
- They have more than 60,000 merchants registered across various cities.
- They also work with large retailers to diversify their business.
Magicpin – Challenges
- Covid - The current pandemic has halted everything. Almost all the businesses suffered heavy losses due to it. Magicpin depends on the retailers but, they got shut due to the lockdown. It has a setback to the company in several ways. But Magicpin came up with new ideas to deliver to their customers.
- Competitors - Magicpin is one of the leading players in the market. But they have a lot of competitors who are performing well. Some of the companies have more employees than Magicpin and, some of them are getting better reviews from the customers.
Magicpin - Future Plans
Some of the upcoming plans of the company are as follows:
- Magicpin is planning to expand its business in tier-2 cities.
- They are planning to search more areas in the existing market.
- They will tie-up with several other merchants to give a better experience to their customers.
Magicpin - Competitors
Some of the competitors of the company are as follows:
- Nearby - Founded in 2010
- BlueBook - Founded in 2012
- Little - Founded in 2015
Magicpin – Helping Customers Save Great
Magicpin helps its customers in several ways. They provide everything to their customers on one platform and help them in saving their precious time. Magicpin is doing a great job in this sector and, their customer base is increasing every day.