Local discovery, rewards, and commerce platform Magicpin that recently scooped up Series C round has recorded 4X jump in revenue in FY18. The Gurugram-based company posted a revenue of Rs 7.64 crore in FY18 from Rs 1.83 crore in the preceding fiscal.
Meanwhile, the expense for the three and half years old firm also ballooned by over 2X to Rs 36.55 crore in FY18. The expense figure stood at Rs 17.14 crore in FY17.
With Rs 14.71 crore, employee benefit incurred the largest component of overall expense while promotion component accounted for Rs 10.1 crore. The company has burnt close to Rs 5 crore towards redeeming customer points (aka cashback) in FY18.
This essentially outlines that Magicpin has lost Rs 5 to earn a rupee in FY18. In the previous fiscal, it lost Rs 10 to make Re 1.
During the 12 months period ending on March 31, 2018, Magicpin has made Rs 4.25 crore from marketing and commission. It’s a 300 per cent increase in FY18 from mere Rs 1.01 crore in the previous financial year.
When it comes to net loss, the firm has lost Rs 28.91 crore in the last financial year. It recorded about 88 per cent increase in FY18 from Rs 15.30 crore in preceding fiscal.
Magicpin uses location intelligence to deliver discovery, recommendations, and rewards for local experiences. It lest users to earn points on sharing experiences across categories like restaurants, nightlife, beauty, and fashion through pictures.
The company had recently closed $20 million financing round led by Lightspeed Venture Partners US. With the latest proceeds, the valuation of Magicpin was estimated to cross $100 million mark.
So far, the company has amassed over $30 million risk capital across four rounds.
Magicpin’s competitor Crownit had witnessed a downfall of 2.3 per cent to Rs 5.79 crore to Rs 5.65 crore. Unfortunately, the operational revenue dipped by 59 per cent to Rs 1.84 crore in FY18 from Rs 4.47 crore in the preceding financial year.