Magicpin aims to be profitable by mid 2024, says CEO Anshoo Sharma

Magicpin, discovery and discount platform for offline and physical retail, aims to be profitable by mid 2024 riding on the bounce back of offline shopping post covid, Anshoo Sharma, CEO & Co-Founder of the company told ET.

The company is profitable at the unit level.

The company, which has grown two and half times in the last 15 months, aims to double the growth by December 2023 and double that again by the end of 2024.

“Retail industry has phenomenally bounced back after covid and it has grown beyond the peak that it used to be in the early 2020. Some of it was pent up while some of it is natural consumption growth that’s happened subsequently,” said Sharma.

Magicpin has 5 million retailers listed on its platform of which 2 lakh retailers have contract with them, where magicpin user get discount.

“We are currently at $3b Gross merchandise volume (GMV) with 10 million active users on platform. We have grown two and a half times in the last 15 months since we have closed our last fund raise and we aim to reach $12b GMV by the end of next year,” Sharma said.

Magicpin is backed by investors such as Lightspeed, Zomato, Waterbridge and Google. In November 2021, magicpin raised $60 million in Series D funding round to bolster its hyperlocal retail market expansion.

“December 2022 was probably the biggest year for the retailers. The rate of growth might not be the same but from here onward there will be organic consumption growth,” Sharma said.

Magic pin brings local market on to the user’s smartphone where user can discover nearby shops and F&B outlets and get discounts for shopping there through the app.

“While this entire online ecosystem of e-commerce is growing, but if you think of trillion dollar retail market, that online ecosystem is only 10%. 90%of retail is offline and we have a huge scope to grow,” said Sharma.

“We have a transaction model where user discover the store and shop through us. Local retailer has no one coming to him to drive growth. They pay us only if we drive business to him,” the executive said.

70% of the retailers on Magicpin’s platform are local while 30% are organised. A user would do around 6 transactions on magicpin every month.

“We are the superapp for all the need of a shopper as we reward user on all transactions, give them points in every transactions. These points they can use at our partner store,” Sharma said.

The company has seen growth across tier 1 and tier 2 cities where apparel and fashion industry has particularly done well.

“We will continue to add locality, once we enter a locality we look to add more and more store. Instead of giving massive discount to you for something you don’t want, we reverse the whole things and say we will give you a nice saving for something you want,” Sharma said.