Magicpin, a hyperlocal e-commerce startup, has solidified its position as the third-largest food delivery application in India. The company has experienced rapid expansion, driven by its hyperlocal commerce model, which enables businesses to enhance visibility, increase engagement, and boost demand. Founded in 2015 by Anshoo Sharma, Magicpin has evolved into a key player in India’s food delivery ecosystem while also establishing itself as the largest seller app on the Open Network for Digital Commerce (ONDC).
Anshoo Sharma, an IIM Ahmedabad alumnus, began his career in engineering and consultancy before moving into venture capital. After working at Motorola and Bain & Co., he became a venture partner at Lightspeed India Partners Advisors. Leveraging his deep industry insights and expertise, Sharma co-founded Magicpin to bridge the gap between offline retail businesses and digital commerce. Over the years, the platform has grown beyond retail discovery, incorporating food delivery services and revolutionizing hyperlocal transactions.
Magicpin’s growth trajectory has been impressive, especially in the food delivery segment. According to Business Standard, the startup reported a threefold increase in revenue for the financial year 2024 (FY24), reaching ₹870 crore, compared to ₹297 crore in the previous fiscal year. This significant revenue jump highlights the company’s success in scaling operations and increasing market penetration. In addition to revenue growth, Magicpin has improved its financial health, with its EBITDA margin narrowing to -9.8% in FY24, a notable improvement from -39.2% in FY23. Furthermore, the company reported a 30% reduction in its cash burn, showcasing its disciplined approach to operations and cost management.
Magicpin has played a significant role in India’s evolving digital commerce landscape, especially through its presence on ONDC. The platform now processes approximately 1.5 lakh food and logistics orders daily, demonstrating its ability to compete with established food delivery giants. A key factor in its growth has been strategic partnerships with leading food brands, including Faasos, Oven Story, McDonald’s, Burger King, Pizza Hut, Barbeque Nation, Barista, and Wow! Momo. These collaborations have strengthened Magicpin’s foothold in the highly competitive food delivery sector, allowing it to expand its customer base and enhance service offerings.
In December 2024, Magicpin took another bold step by entering the quick food delivery market with the launch of MagicNOW, its 15-minute food delivery service. This move positioned the company in direct competition with existing rapid food delivery platforms. The launch of MagicNOW was met with strong consumer demand, as evidenced by the completion of 200,000 orders in its first month alone. This success indicates that the Indian market is increasingly leaning toward ultra-fast delivery services, a trend that Magicpin is well-positioned to capitalize on.
The company’s leadership has expressed confidence in its ability to sustain its momentum. Magicpin’s Chief Financial Officer, Chunky Shah, emphasized the organization’s growth strategy, stating, “We are now India’s third-largest food delivery app and the largest seller app on ONDC for delivery. The 30% reduction in burn demonstrates our disciplined approach to operations and extensive use of Gen-AI, positioning us well for a sustainable growth trajectory.”
As the competition in India’s food delivery market intensifies, Magicpin’s ability to innovate, optimize costs, and expand its service offerings will be crucial in sustaining its market position. With its strong financial performance, growing brand partnerships, and a keen focus on quick commerce, Magicpin is poised to play a significant role in shaping the future of food delivery and hyperlocal commerce in India.
