Savings app Magicpin raises $60 million in funding led by Zomato
In a regulatory filing, BSE-listed Zomato said its board has approved the acquisition of 16.1 percent stake in magicpin (Samast Technologies) for Rs 371.3 crore
New Delhi: Magicpin, a platform for discovery and savings in offline retail, has said it has raised USD 60 million (about Rs 446 crore) in funding, led by Zomato.
The Series D round also saw participation from existing investors, including Lightspeed Venture Partners, a statement said.
Magicpin will use funds for deepening its presence in existing markets, launching new markets, and expanding across categories, it added. The company has raised about USD 100 million till date. Magicpin drives the discovery of brands and retailers across categories like fashion, food, electronics, grocery, pharma, nightlife, and entertainment. Users transact on the app using multiple methods and earn points on every transaction.
The app, which shows relevant offers from merchants where these points can be used to make savings, currently serves six million active users. It provides savings on nearly 1.7 lakh merchants across big brands and local retailers.
The company has a presence in 50 cities, including metros and cities like Jaipur, Hyderabad, Lucknow, Pune, and Chandigarh.
What Zomato did with restaurants, magicpin is doing for the entire offline shopping experience. "Magicpin is one of the most important players in the nascent hyperlocal e-commerce space (both offline and online) and we expect magicpin to create a tremendous amount of value for its merchant partners as well as customers going forward", Zomato chief executive officer Deepinder Goyal said.
In a regulatory filing, BSE-listed Zomato said its board has approved the acquisition of 16.1 percent stake in magicpin (Samast Technologies) for Rs 371.3 crore.
The board, at its meeting on Wednesday, approved "acquisition by way of subscription of 55,514 compulsorily convertible preference shares aggregating to 16.1 percent of the share capital of Samast Technologies Pvt Ltd for an aggregate cash consideration of Rs 371,34,98,002," the filing said.
The investment is in the nature of a minority investment, and will help magicpin to grow its business, it added.
Magicpin's turnover for the year ended 31 March, 2021, stood at Rs 146.2 crore, as per the filing.
Magicpin was started in 2015 by Anshoo Sharma and Brij Bhushan and has grown to six million monthly consumer transactions. The company also started home delivery from nearby stores to complete the full cycle from offline discovery to at-home fulfillment.
Local retail is the lifeblood of our country. Magicpin is helping drive omnichannel growth for local retail and enabling them to leverage the fast-growing digital world. "We are excited about welcoming Zomato into the company — this round puts us in a position to own and transform the offline shopping experience across India", magicpin co-founder and chief executive officer Anshoo Sharma said.
"The creativity, determination, and resilience of the team have led them to pioneer a truly unique 'made for India' business at the intersection of commerce, loyalty, and payments that creates meaningful value for small merchants. "We're excited for their next phase of growth and innovation", Lightspeed partner Bejul Somaia said.
Zomato had introduced support for online orders last month, and now the company has launched a new standalone app called Zomato Order.
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