News Update

Magicpin’s FY22 Net Loss Widens to INR 145 Crore, While Operating Revenue Grows 1.6 Times

• ByStartupStory     |    February 17, 2023

Magicpin, a savings platform based in Gurugram, reported a significant increase in its net loss for the financial year 2021-22, which widened 3.3 times to INR 144.96 crore compared to INR 43.75 crore in FY21, due to a surge in expenses that matched the growth of its business.

 Despite this, the startup’s revenue from operations grew 1.6 times to INR 232.78 crore, up from INR 146.22 crore in the previous fiscal. Magicpin generates revenue through the sale of vouchers and by providing marketing services and support to its customers.

In the fiscal year 2021-22, magicpin, a discovery and user savings platform founded by Anshoo Sharma and Brij Bhushan in 2015, reported a 1.6 times increase in total revenue, reaching INR 239.4 crore, up from INR 148.1 crore in FY21. The platform helps retailers and brands to connect with local customers, showcase their unique offerings, incentivize loyal customers with magicpin points and vouchers, real-time promotions, augmented reality games, and run micro-influencer campaigns. 

In the financial year 2021-22, magicpin reported a 1.8 times surge in total expenses, increasing to INR 348.36 crore from INR 191.87 crore in FY21. Other expenses accounted for the largest portion of the total expenses, rising by 2.1 times YoY to INR 327.8 crore in FY22. These expenses comprised power and fuel expenses, rent expenses, legal expenses, IT expenses, advertising and promotional expenses, and miscellaneous expenses, among others.

The advertising and promotional expenses of the startup skyrocketed by 7.3 times to INR 80.72 crore in FY22 from INR 11.12 crore in FY21. Meanwhile, miscellaneous expenses witnessed a 1.7 times surge to INR 225.43 crore from INR 130.14 crore in FY21.

In FY22, magicpin did not provide a detailed breakdown of its miscellaneous expenses. However, its employee benefit expenses grew 1.5 times to INR 58.4 crore from INR 38.45 crore in FY21, which covers employee salaries, PF contributions, gratuity, and other employee welfare benefits. Moreover, the startup increased its ESOP pool from 1,76,520 options to 3,89,580 options in January 2022.

Zomato, Lightspeed Venture Partners, and other investors have backed magicpin, which has secured a total funding of $104.9 million to date. In November 2021, the company raised $60 million in a Series D funding round led by Zomato.

 

 

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