- Magicpin has crossed annual gross merchandise value (GMV) of $1 billion (around $7,129 crore) in India, spurred by its expansion into several cities and towns in the country.
- The Gurugram-based company, which claims to have a user base of more than five million, is present in over 40 cities across India, including the top metro stations. It recently launched operations in Jakarta, Indonesia.
Offline discovery and rewards platform Magicpin has crossed annual gross merchandise value (GMV) of $1 billion (around $7,129 crore) in India, spurred by its expansion into several cities and towns in the country and collaborations with leading brands, Anshoo Sharma, the platform’s co-founder and CEO, said in an interview.
“Our business crossed a billion dollars of size in October… divided equally between food and beverage (F&B), apparel, grocery, electronics, and beauty,” said Sharma.
The Gurugram-based company, which claims to have a user base of more than five million, is present in over 40 cities across India, including the top metro stations. It recently launched operations in Jakarta, Indonesia.
The company is planning to expand its footprint by the end of next year to around 200 cities in India.
“We’re going to the smallest cities right now… and because the model is very tightly wired, we’re breaking very fast. It’s relatively capital-efficient, “Sharma said. MagicPin is” close to $30 million in annual GMV operating rate in Jakarta, and we believe the market will grow much faster, “the platform’s CEO said.
In the next few years, he said, the company could grow into other emerging markets within Southeast Asia.
The Magicpin app helps its users discover restaurants, fashion, grocery, and electronics stores and products, in their city.
The app helps connect consumers with thousands of small retailers, most of whom are not spending on marketing, as well as big retailers, Sharma said. It provides a rewards program through which, for instance, users earn points for sharing images of store bills, which allows the organization to collect transaction data. This data, he said, allows them to identify patterns of expenditure. However, the points can only be redeemed in partner stores with the Magicpin.
“While we’re aggregating demand from the entire city, we’re pointing it back to a group of merchants who’re willing to pay for it,” he said. Merchants can spend whatever they choose, and a commensurate return will be given, he said. “We get a percentage of whatever business we drive to our partners,” Sharma said.
Magicpin has been working with over 800,000 retailers, including well-known brands including Titan, Fabindia, McDonald’s, Shoppers Stop, and Café Coffee Day. The company, founded in 2015, is funded by Lightspeed Venture Partners, a US-based venture capital firm, whose investments include Snapchat and OYO, and WaterBridge Ventures, an early-stage VC company.
For retailers and brands, Magicpin is the go-to platform to reach out to relevant local customers, highlight their uniqueness, reward loyal customers through Magicpin points and vouchers, real-time promotions, augmented reality games, run micro-influencer campaigns and more. Magicpin builds engagement and visibility for its partner retailers and brands to help drive up their new and repeat business.
Magicpin is by far the leader in offline marketing for retailers in India. It has grown 5x in 2018 and are on track to repeat that in the coming year. This is a massive $1T market in India – 50x the size of all e-commerce in the country.