Local discovery and rewards app Magicpin raises $7M in Series B funding
Gurugram-based local discovery, rewards, and commerce platform, Magicpin has raised $7 million in Series B round from Lightspeed India Partners, Waterbridge Ventures, and two global family offices. The round also saw the participation from Srivatsan Rajan (Chairman, Bain and Co. India) and Sahil Barua (CEO of Delhivery).
The funds raised will be used to enhance the product, strengthen the leadership team, and to go deeper and wider across categories and geographies.
Anshoo Sharma, Co-founder and CEO of Magicpin, told YourStory:
“We are entering FMCG brands as a new category immediately and are going live across 10 more cities including, Pune, Hyderabad, Chennai, and Ahmedabad over the next six to 12 months. In tech and product, we are investing in building deeper location intelligence to enable delightful discovery of experiences.”
Magicpin uses location intelligence to deliver discovery, recommendations, and rewards for local experiences. Magicpin users share their experiences across categories like restaurants, nightlife, beauty, and fashion through pictures that surface in other user’s feeds, inspiring them to discover and try these experiences, with the added benefit of rewards for spending at participating merchants. Magicpin app also makes personalised recommendations to its users based on the consumption pattern of the user and/or similar users on the Magicpin network.
The company was founded in 2015 by Anshoo, former Venture Partner at Lightspeed India Partners, and Brij Bhushan, former Nexus Venture Partners, who were colleagues at Bain and Co. Magicpin is currently live in Delhi/NCR, Mumbai, and Bengaluru.
Magicpin has claimed to have grown by seven times in the last 12 months to reach $40 million in annual business that it drives to its merchant base. It has more than a million users who have shared more than five million experiences and are highly active on the app, with average daily sessions of more than 30 minutes.
Anshoo said, “Spending is shifting from ownership to experiential happiness – dining out with someone special, chilling out with friends in a coffee shop, a walk through Old Delhi, or simply shopping from the secret pop stores selling international labels in local markets. Magicpin is the place for users to discover and share such experiences and get rewarded for doing so.”
He further added that over the last 12 months, they have invested in building a product that delivers strong user retention and purchase frequency and validating unit economics at a neighborhood level.
Bejul Somaia, MD at Lightspeed India Partners, said: “The vast majority of commerce is, and will continue to be, transacted offline. Magicpin’s metrics reflect early but exceptional success in capturing smartphone-wielding users and directing their offline spend to participating merchants, while creating compelling ‘hooks’ that cause users to engage and transact with unusually high frequency through the app.”
Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.