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Magicpin becomes largest food delivery seller app on ONDC

EntrackrEntrackr · 9m ago
Magicpin becomes largest food delivery seller app on ONDC
Medial

Magicpin on Tuesday said that it has emerged as the largest food delivery seller on the Open Network for Digital Commerce (ONDC), processing nearly 150,000 daily food and logistics orders. Since joining ONDC in March 2023, Magicpin claims to have expanded its restaurant partnerships from 22,000 to 70,000 by September 2024. Within just four weeks of its ONDC launch, Magicpin scaled from 100 to 10,000 orders in May 2023, reaching 150,000 orders this year. The platform’s growth is driven by its SaaS offering, which powers the front-end of other buyer apps, and its hyperlocal delivery service, Velocity, launched earlier this year. Magicpin’s Delivery as a Service (DaaS) is now used by brands like KFC, Burger King, and IGP gifting. Recently, Magicpin announced an investment of Rs 100 crore to onboard 1 lakh new restaurants and cloud kitchens onto ONDC. This investment also funds onboarding incentives, such as zero commission, no onboarding fees, discounts, and free delivery for customers of newly partnered restaurants. Magicpin is also a local savings platform, serving over 10 million users who earn rewards on annual spending exceeding $3 billion across 275,000 retailers and over 3,000 brands in categories such as fashion, food, electronics, grocery, and more.

Magicpin scales up over 83% in FY23; controls losses

EntrackrEntrackr · 1y ago
Magicpin scales up over 83% in FY23; controls losses
Medial

Offline discovery and rewards platform Magicpin grew at a rapid clip with over 83% year-on-year growth during the fiscal year ending March 2023. Reduced spendings on advertising further helped the Gurugram-based company to keep losses in check during the same period. Magicpin’s revenue from operations grew by 83.3% to Rs 297 crore in FY23 from Rs 162 crore in FY22, its consolidated financial statements filed with the Registrar of Companies show. The sale of vouchers was the primary source of revenue for the Lightspeed-backed firm. While the collection from commission and marketing were other revenue drivers for Magicpin. It also made Rs 18 crore from interest on fixed deposits and the sale of current investments, tallying the overall income to Rs 315 crore in FY23. ALSO READ: MagicPin holds the fort for hyperlocal space; ONDC next frontier For the rewards platform, the sale of procurement vouchers was the largest cost center for the company while its employee benefits increased by 26.7% to Rs 76 crore in FY23. Its advertising and promotions, legal/professional, finance, traveling, and other overheads catalyzed the overall expenditure up by 34.5% to Rs 429 crore in FY23 from Rs 319 crore in FY22. Check TheKredible for the detailed expense breakup. A 40% cut in advertising helped Magicpin reduce its losses by 23.5% to Rs 114 crore in FY23 from Rs 149 crore in FY22. Its ROCE and EBITDA margins stood at -48% and -35.2% respectively. On a unit level, it spent Rs 1.44 to earn a rupee in FY23. The sharp cut in advertising signals the efforts at Magicpin to turn the corner on losses that still have a long way to go. The dependence of the business on constant advertising support will become starker in the FY24 numbers, but we believe growth will be impacted if the firm does that — which would indicate costs will need to be cut in many more areas to drive in revenues at a lower cost. While the firm does not share category wise breakups, we believe the dine-out category, and possibly electronics are key, but those are also where Magicpin bears the highest costs. It’s a business where assumptions have to be challenged constantly, and Magicpin, with all its experience in the business now, needs to figure out newer categories where it can cut better deals faster and take them to market more smartly as well. It could be something as extreme as lab diamonds, gardening equipment, or whatever research turns up, but a rethink is a must. Meanwhile, the company says they have witnessed stupendous growth in the fiscal year ended 2024. “In FY24, we have more than doubled our scale and revenue. This growth is primarily driven by better penetration in our core localities, leadership in offline retail segments of fashion & mom-&-pop QSR and higher user engagement,” said Chunky Shah, head of finance, Magicpin. “Our cash-burn reduced more than 50% in the same period, and we remain committed to achieve EBITDA break-even in the next fiscal year.” FY22-FY23 FY22 FY23 EBITDA Margin -86% -35.2% Expense/₹ of Op Revenue ₹1.97 ₹1.44 ROCE -44% -48% Over the past 12 months, the firm claims to have added more than 150 fashion brands, and 10,000 fashion stores. It also saw significant progress with the Open Network for Digital Commerce (ONDC) network where it claims to have witnessed two-fold growth in the food delivery orders and orders peaked at 50k in a single day. Note: Magicpin had previously recorded its revenue for FY22 as Rs 233 crore, but have now changed their methods to IndAS accounting standard, which brought down their FY22 revenue to Rs 162 crore.

Magicpin records 15x order growth on ONDC network in 15 months, crosses 1.5 lakh daily orders

Economic TimesEconomic Times · 9m ago
Magicpin records 15x order growth on ONDC network in 15 months, crosses 1.5 lakh daily orders
Medial

- magicpin has achieved a 15 times growth in daily orders for food and logistics services on the government-backed ONDC platform. - They started with 22,000 restaurant partners and scaled it up to 70,000 partners on ONDC. - magicpin witnessed a rapid increase in daily orders, from 100 to 10,000 in just four weeks. - The company has achieved double-digit market share in major cities, with over 10% market share in cities like Delhi and Bengaluru. - 90% of food orders from prominent buyer apps like Paytm, Tata Neu, and Ola are now fulfilled by magicpin. - magicpin has invested Rs 100 crore to onboard 1 lakh new restaurants and cloud kitchens on ONDC, providing incentives such as zero commission, zero fees, discounts, and free home delivery for customers.

Magicpin triples revenue to Rs 870 Cr in FY24, cuts losses

EntrackrEntrackr · 5m ago
Magicpin triples revenue to Rs 870 Cr in FY24, cuts losses
Medial

Magicpin triples revenue to Rs 870 Cr in FY24, cuts losses Hyperlocal retail platform Magicpin demonstrated notable financial results, scaling nearly three-fold during the last fiscal year, which ended in March 2024. Moreover, the Gurugram-based firm managed to control its losses by 25% in the same period. Magicpin’s revenue from operations surged 2.92X year-on-year to Rs 870 crore in FY24 from Rs 297 crore in FY23, its annual financial statements sourced from the Registrar of Companies show. Magicpin, a hyperlocal retail platform, has partnered with over 500 brands and 20,000 fashion stores across India. The sale of vouchers contributed 92% of its total operating revenue, making it the primary revenue source for the Lightspeed-backed firm. Additional revenue came from commissions and ONDC subsidies. The company earned an additional Rs 9.6 crore from interest on deposits and investment gains, bringing its total income to Rs 880 crore in the last fiscal year from Rs 315 crore in FY23. Magicpin has launched MagicFleet, an AI-powered SaaS platform that onboarded over 40,000 riders in its first four months and now processes more than 3,00,000 orders per month. The company plans to expand this to 1,00,000 riders and 1 million deliveries. It introduced magicNow, a feature designed to meet the increasing demand for fast deliveries. For the reward platform firm, the procurement of vouchers was the largest cost center, forming 80.7% of the overall expenditure. To the tune of scale, this cost grew 3X to Rs 776 crore in FY24 from Rs 253 crore in FY23. The firm managed to keep its employee benefits flat and its advertising cost was reduced by 15% in the previous fiscal. Its delivery charges, technology, server, payment gateway, legal, and other overheads pushed the total expenditure to Rs 961 crore in FY24. The three-fold surge in scale coupled with controlled expenditure helped Magicpin to reduce its losses by 25% to Rs 78 crore in FY24. Its ROCE and EBITDA margins stood at -49.7% and -8.67%, respectively. Magicpin’s cost efficiency improved, with Rs 1.10 spent to earn a rupee in FY24. At the end of the last fiscal year, its total current assets stood at 196 crore with the cash and bank balance of Rs 50 crore. We excluded ESOP costs from the loss calculation as they are non-cash expenses. Magicpin reported that FY 2024 was a transformative year, establishing itself as India’s largest hyperlocal startup, the third-largest food delivery app, and the largest seller app on ONDC for delivery, according to CFO Chunky Shah. Magicpin has grown without raising external funds in the past two fiscal years. In November 2021, it secured $60 million in a Series D round, with Zomato investing $50 million for a 16% stake. According to TheKredible, Lightspeed is the largest stakeholder, holding a 34% stake in the firm. Launched well after the first startup rush into ecomm but early enough to avoid some of the worst excesses, Magicpin has done well to outlast many of its peers since it started in 2015. Leaving it well placed to take advantage in a market that has evolved considerably, and no longer demands the kind of burn rates we saw till about 2020. As a leader in the ONDC space, Magicpin has gained a strategic advantage and appears well-positioned to leverage new opportunities. The company, often seen as a quiet performer, may still have more surprises in store.

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