December 30, 2024
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Zomato-backed Magicpin set to join tech-IPO bandwagon
Hyper-local e-commerce firm Magicpin, backed by investors such as Zomato and Light Speed Ventures, is planning to go public in 2025 and has initiated talks with investment banks and law firms to appoint advisors for the IPO, people aware of the matter told.
Magicpin allows customers to discover offline retailers in their neighborhood, across categories such as fashion, food, grocery, and electronics among others and obtain offers and discounts for them. Users can transact on the app using multiple methods and earn points on these transactions. These points can be used for discounts at various merchants on the platform.
Earlier this month, Magicpin announced that it is entering the quick commerce segment for food delivery in cities such as Bangalore, Hyderabad, Mumbai, Chennai, Delhi-NCR, and Pune under its magicNow brand that will provide fast food delivery within a 1.5 km to 2 km radius.
“The company has recently held pitches to appoint investment banks and law firms for the proposed IPO. These are early days for the deal and the company is yet to finalize the contours of the deal. There are several VC funds, angel investors and investors like Zomato on the captable, so the eventual deal size will depend on how much stake these guys want to dilute through the IPO. Those details will be finalised closer to filing the DRHP,” said one of the people cited above
The company was founded in 2015 by co-founders Anshoo Sharma and Brij Bhushan, who left the company in April 2024 to join an early stage venture capital fund.
Magicpin’s last fundraise came in 2021 when the company raised $60 million in a series D round led by food delivery app Zomato. The round also saw participation from existing investors such as Lightspeed Venture Partners.
Emails sent to co-founder and CEO Anshoo Sharma remained unanswered till the time of publication.
Magicpin Financials
As per the latest details available with the Registrar of Companies, Magicpin’s parent firm Samast Technologies, recorded a consolidated revenue of Rs 297.24 crore in FY23, compared to a revenue of Rs 162.44 crore in the previous financial year.
The company reported a loss of Rs 114.26 crore in FY23, lower than the loss of Rs 149.29 crore in the year ago period.
Zomato held a 16.95 percent stake in Magicpin as of 31 March 2023, as per the latest available shareholding pattern of the company with RoC. Lightspeed Venture Partners is the biggest shareholder of the company with a 36 percent stake. Founders Anshoo Sharma and Brij Bhushan held 14.92 percent each.
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