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Exactly when the 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 the local area. With that innovative concept, two brilliant minds founded Magicpin. Read more about Magicpin Business Model, Funding, Magicpin Competitors, Revenue, Founders, Company Profile etc.,
Magicpin was co-founded by Anshoo Sharma and Brij Bhushan in 2015. Both these co-founders were at Lightspeed India and Nexus Venture Partners, respectively, before they started Magicpin. This company drives discovery to local retailers across various industries such as fashion, food & beverages, and grocery establishments.
Magicpin - Company Highlights
| Startup Name | Magicpin |
|---|---|
| Headquarter | Gurugram, India |
| Sector | E-commerce |
| Founders | Anshoo Sharma, Brij Bhushan |
| Founded | 2015 |
| Total Funding | $37.9 Million |
| Valuation | $147.13 million (May 2020) |
| GMV (Gross Merchandise Value) | ~ $1 Billion (2020) |
| Competitors | Nearbuy, BlueBook, Little |
| Legal Name | Samast Technologies |
| Website | magicpin.in |
Magicpin - About & How does Magicpin work?
Magicpin - Founders and Team
Magicpin - Business Model & Revenue Model
Magicpin - Competitors
Magicpin - Funding & Investors
Magicpin - Growth
Magicpin - Partnerships & Tie-ups
Magicpin - Future Plans
Magicpin - FAQs
Lakshya Singh
Magicpin - About & How does Magicpin work?
To put it simply, Magicpin is nothing but an online location intelligence platform that allows the users to discover restaurants, fashion stores, spa, and fitness centers in the nearby areas. Headquartered in Gurgaon, Haryana, Magicpin is a platform for merchants and brands to engage and provide personalized offers to their customers.
- Recognition: Magicpin as a platform also enables the users to get followers, likes, and comments for their taste and interests in local activities.
- Referral Chain: Brings out the uniqueness by getting the merchant’s customers to spread the word in the locality and amongst their social circles.
- Discovery: Magicpin enables discovering of trending events, interesting people, and relevant activities around the users' locality that makes it all the more interesting for users.
- Potential customer acquisition: Caters to both new and established merchants to acquire potential consumers in the course of the business.
- Increase in utilization: Build transactions in off-peak hours and liquidate excess inventory.
- Savings: Through merchants, rewards programs specially designed for Magicpin users.
- Enhancing customer engagement: MagicPin comes up with strategies and offers that existing customers can come back more often.
Magicpin - Founders and Team
Magicpin is co-founded by Anshoo Sharma and Brij Bhushan.
Anshoo Sharma, CEO & Co-Founder, has 15 years of professional experience in investing, consulting, and tech roles across India and the USA. Before Magicppin, 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 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, COO & Co-Founder, has spent a large part of his professional life 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 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.
Lakshya Singh
Magicpin - Business Model & Revenue Model
“Our business model is funded primarily by merchant and the brands”, says Anshoo.
Anshoo adds about the Business Model of Magicpin, that merchants and brands use the platform to engage or provide personalized offers to their customers. They pay a recurring platform fee and a per-transaction charge for the business that Magicpin drives to them.
“We are primarily a data and technology company, resulting in a very capital-efficient cost structure that allows us to scale to a large customer and merchant base without significantly increasing our costs”, says Anshoo Sharma, CEO and co-founder of Magicpin.
Magicpin operates via a back-end platform that reads bill invoices that are uploaded by the customer. It logs the amount spent and the items consumed which help the system track the shopping pattern of the user. The bills work as validation for the user who can post content across categories such as food & beverages, fashion, grocery, etc.
The customers share their local experiences through picture stories and the users get rewarded with ‘Magicpin points’. These points can then be used to buy many more services and experiences at Magicpin partnered merchants. The user experiences are diversified across varied interesting categories like restaurants, nightlife, beauty, and fashion through pictures.
For revenue generation, Magicpin charges a commission from the merchant for each transaction. Sharma pegged the rate of commission between 10-12%. Advertising and marketing is another source of revenue as the company can leverage its consumer data and provide advertising and promotion to merchants that help the latter reach out to customers better.
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, Delhi. Nearbuy generates 175% of Magicpin's revenue and competes in the Systems Software industry.
- 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. BlueBook has 56 more employees than the company.
- Little is a Private company that was founded in 2015 in Bangalore, Karnataka. Little also works within the Application Software field, just like Magicpin. Little has 279 employees more as compared to Magicpin.
Shubham Kumar
Magicpin - Funding & Investors
Magicpin has raised a total of $37.9M in funding over 6 rounds.
| Date | Stage | Amount | Investors |
|---|---|---|---|
| February 2016 | Series A | $3 million | Lightspeed Venture Partners |
| May 2016 | Non Equity Assistance | $50K | Google Launchpad Accelerator |
| May 2017 | Series B | $7 million | Lightspeed Venture Partners |
| March 2018 | Debt Financing | $1 million | Trifecta Capital |
| November 2018 | Series C | $20 million | Lightspeed India Partners |
| May 2020 | Series C | $3.8 million | Lightspeed, Waterbridge Ventures, The Bunting Family Private Fund and Moonstone Investments |
| July 2020 | Series C | $3 Million | Samsung Venture Investment Corporation |
Magicpin is funded by investors WaterBridge Ventures, Lightspeed Venture Partners, Srivatsan Rajan, Moonstone Investments, The Bunting Family Private Fund, and Trifecta Capital Advisors.
Magicpin - Growth
According to the official website, at present, Magicpin has over 5 Million users and is operational in 12 cities including Delhi, Gurugram, Noida, Bengaluru, Mumbai, Pune, Hyderabad, Chandigarh, Jaipur, Goa, Chennai, and Ahmedabad.
The company has grown 7x over the last year and generates an average of $3 million in revenue. Over 1 million users have shared 5 million+ experiences and are active on the app. Magicpin’s active users spend up to 70 minutes on the app every day. The startup has more than 50K merchants across the Delhi NCR region, Bengaluru, and Jaipur.
The company works with larger retailers such as McDonald's, Hard Rock Cafe, KFC, Beer Cafe, Keventers, and Subway contributing 25% of the total business while remaining 75% comes from the long-tail of smaller merchants. F&B garners the largest share of business for the company at 60%, followed by fashion and beauty.
During the pandemic, Magicpin announced essentials delivery by leveraging its partnerships with local retailers and has tied up with last-mile delivery logistics firms to deliver orders for essential products such as groceries, packaged food, and hygiene products.
Devashish Shrivastava
Magicpin - Partnerships & Tie-ups
Magicpin, the local discovery, and commerce platform has tied up with McDonald’s, The Beer Café, Decathlon, Chaayos, Smaaash, and thousands of local merchants to launch augmented reality on its app, thus becoming the first Indian company to implement this unique concept for consumer engagement.
This new feature showcases ‘quests’ at a nearby merchant location, where treasures (like flying beer, a gold chest, dancing burger, etc.) are hidden in the augmented reality space. On finding the treasure, users can instantly redeem it for a real-world reward at the store counter. MagicPin has also become a part of the second batch of Indian start-ups that joined Google’s Launchpad Accelerator program at Silicon Valley, California.
Magicpin - Future Plans
As the venture moves forward, instead of expanding to more cities, Magicpin will focus on going deeper into the existing markets. With existing operations in Delhi, Mumbai and Bengaluru, Magicpin recently expanded to Hyderabad, Pune, Chennai, Jaipur, and Chandigarh.
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 personalised 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.
Author: Rishabh Rathi
Source : https://startuptalky.com/magicpin-success-story/
Date : 2021-07-08T08:54:00.000Z