Exclusive: Lightspeed is leading fresh round in Magicpin

Offline discovery and reward platform Magicpin is set to raise Rs 29.3 crore in a new round led by Lightspeed Venture Partners. The fresh financing is coming after 20 months and at a time when its core business has been standstill for the past two months.

Moonstone Investments, WaterBridge Venture, The Bunting Family Private Fund LLC and Srivatsan Rajan also participated in the round. According to regulatory filings, Lightspeed will put in Rs 23.16 crore. Moonstone Investments would invest Rs 2.86 crore while WaterBridge is picking up Rs 1.23 crore worth shares.

The round seems to be an ongoing one and Magicpin could raise more capital in the near future. In November 2018, the company had raised $20 million Series C round led by Lightspeed (US) at an estimated valuation of $100 million.

Founded by former venture capitals Anshoo Sharma and Brij Bhushan, Magicpin leverages location intelligence to deliver discovery, recommendations, and rewards for local experiences. The company claims to have 400K retail outlets on its platform.

Since its core business is almost nil due to Covid-19 pandemic, Magicpin had ventured into the delivery of essentials and groceries. It also launched a campaign - #SavetheLocal - to help offline retailers. Starting from Jakarta, (Indonesia) Magicpin also made a debut in the overseas market in September.

Post this investment, the company will be valued in the range of Rs 1,107 crore ($148 million). It will be a sharp jump from its market cap which stood around Rs 700 crore ($100 million) during Series C round.

Once the transactions go through, Lightspeed will control 42.27% stake in Magicpin while The Bunting Family Private Fund LLC would command 6.78% equity.

Moonstone Investments will sit on 5.21% ownership in the firm and WaterBridge Venture will own 1.58%. With 39.95%, promoters would be the second-largest stakeholders after Lightspeed.

Magicpin competes with ShopX, Paytm-owned NearBuy and Little among a few others. Crownit also used to be one of its competitors, however, the company had pivoted to become a market intelligence platform for brands.