Exclusive: Ritesh Agarwal leads fresh investment in Magicpin at $165 Mn valuation

Offline discovery and reward platform Magicpin has raised around $3 million in a new tranche led by Oyo’s founder Ritesh Agarwal through his personal special purpose vehicle (SPV) RA Holdings. 

Existing investors Lightspeed, The Bunting Family and Moonstone have also participated in the tranche. This is the second infusion by the trio in the past 15 months. They invested $3.9 million in the Gurugram-based startup in May 2020.

Break up of new fundraise and current valuation

Magicpin has passed a special resolution to allot 5064 Series C4 preference shares at an issue price of Rs 44,020.9 per share to raise Rs 22.3 crore or $3 million, regulatory filings show.

Lightspeed and Agarwal have invested $1 million each in the company while The Bunting Family and Moonstone have put in the remaining amount.

According to Fintrackr’s estimates, Magicpin has raised the fresh capital at a post-money valuation of $165 million (Rs 1,220-1,235 crore). The company was reportedly valued at around $147 million in May 2020 and at $100 million in November 2018.

Agarwal’s personal investments

This is one of the largest personal investments by Agarwal in an Indian startup. Last year, he had put in $500K in e-sports platform MPL through RA Holding Pte. In 2021, the entity made investments in Unacademy, Zetwerk, Dukaan and Miko.

Agarwal had also floated a new entity Aroa Ventures last year to make his investment in early-stage startups. Entrackr had exclusively reported about Aroa Ventures in July 2020. These two ventures also backed Stockal, SelFin, Orange Health, ZingBus and FWD Learning. 

Magicpin current shareholding pattern

Following the allotment of fresh shares, Magicpin’s promoters’ (founders) stake has been diluted to 37.94% while its early and major backer Lightspeed holds 44.11%. The complete shareholding can be seen below.

The Bunting Family and Moonshine control 6.81% and 5.29% stake respectively.

Magicpin’s story so far

Founded by former venture capital executives, Anshoo Sharma and Brij Bhushan, Magicpin drives business revenues for small merchants to popular brands through running promotions on its platform. It provides discounts and rewards to users through e-vouchers.

Food and beverages contribute 50% volume for the company followed by grocery and pharma. According to Entrackr sources, the company earns 10% commission on FnB and up to 7% in pharma and grocery verticals. Magicpin claims to have over 1.5 lakh merchants on the platform, serving 50 lakh consumers across 50 cities.

Magicpin also runs a SaaS product Orderhere.io where it helps merchants to go online in a few minutes. Sources emphasise that this product has been received well amongst the merchant ecosystem. Orderhere.io also provides logistic support through third-party logistics companies such as Dunzo. It competes with Dot, Dukaan and OkShop amongst several others.

Recent activities and financial health

Backed by the likes of Waterbridge and Samsung, the company had recently brought in Zomato’s co-founder and CEO Deepinder Goyal to its board as an independent director. Magicpin’s board of directors and advisors include Bejul Somaia, Vivek Gambhir and Manish Kheterpal.

Meanwhile, the company had a decent financial performance in FY20 as it recorded a 2.6X jump in its turnover. According to Fintrackr, its total income stood at Rs 211 crore in FY20 whereas its losses also grew by 84.3% to Rs 94.2 crore. In FY19, Magicpin had total revenue of Rs 82.7 crore.