Magicpin Triples Revenue to Rs 870 Cr in FY24, Reduced Losses

Gurugram-based hyperlocal retail platform Magicpin has nearly tripled its revenue to Rs 870 crore in FY24 from Rs 297 crore in FY23. The company also reduced losses by 25% during the same period.

Magicpin counts partnerships with 500+ brands and 20,000 fashion stores across India. Revenue derived from vouchers comprised 92% of its total revenue, and the company further earned commissions, ONDC subsidies, and Rs 9.6 crore through interest and investment earnings. Last fiscal year saw the firm's total income come at Rs 880 crore, an increase from Rs 315 crore in FY23.

Magicpin has introduced MagicFleet, their AI-based SaaS platform which onboarded a surprising 40,000 riders in the first four months of its launch and now serves a whopping 3,00,000 orders a month. More riders and more deliveries are promised in future i.e. 1,00,000 riders and 1 million deliveries respectively. It also introduced magicNow for faster deliveries. The firm’s largest expense, voucher procurement, grew 3X to Rs 776 crore in FY24 from Rs 253 crore in FY23, forming 80.7% of total costs. However, employee benefits remained flat, and advertising costs were reduced by 15% last fiscal.

The total expenditure for FY24 reached Rs 961 crore, driven by delivery charges, technology costs, server expenses, payment gateway fees, legal expenses, and other overheads. For a detailed breakdown of the expenses, visit TheKredible.

Magicpin reduced its losses by 25% to Rs 78 crore in FY24, driven by a three-fold increase in scale and controlled expenses. The company’s ROCE and EBITDA margins were -49.7% and -8.67%, respectively. Cost efficiency improved, with Rs 1.10 spent to earn a rupee. By the end of FY24, Magicpin’s current assets were Rs 196 crore, including Rs 50 crore in cash and bank balance. ESOP costs, being non-cash, were excluded from the loss calculation.

According to CFO Chunky Shah, Magicpin declared FY 2024 as a transformative year, positioning itself as India's largest hyperlocal startup, the third-largest food delivery app, and the leading seller app for deliveries on ONDC.

Magicpin, which secured $60 million in a Series D round in November 2021, has grown without external funding in the past two fiscal years. Zomato invested $50 million for a 16% stake, while Lightspeed holds the largest share at 34%. Launched in 2015, Magicpin has outlasted many peers by avoiding the excesses of the early e-commerce boom. With the market's evolution and the shift away from high burn rates, Magicpin, a leader in the ONDC space, is strategically positioned to capitalize on emerging opportunities, potentially surprising many as it continues to grow.