Magicpin began as a platform that rewarded people for shopping at nearby stores. Over time, it developed into a wider hyperlocal commerce business covering restaurants, fashion, beauty, grocery, pharmacy, electronics and several other categories.
Customers use Magicpin to discover nearby businesses, purchase discounted vouchers, order food, make payments and earn reward points. Merchants use it to attract customers, promote offers, manage online orders and gain information about local demand. Brands can also run targeted campaigns through the platform.
This creates a multi-sided business model. Magicpin connects consumers, local merchants, large brands, delivery partners and corporate customers. It earns money from vouchers, merchant commissions, advertising, brand campaigns, business subscriptions, delivery services and corporate gifting.
Magicpin Company Quick Overview
| Particular | Details |
| Brand | Magicpin |
| Legal company | Samast Technologies Private Limited |
| Founded | 2015 |
| Founders | Anshoo Sharma and Brij Bhushan |
| Headquarters | Gurugram, Haryana |
| Co-founder and CEO | Anshoo Sharma |
| Business type | Hyperlocal discovery, rewards and commerce platform |
| Main categories | Food, fashion, beauty, grocery, pharmacy and electronics |
| Key services | Vouchers, food delivery, merchant promotions, payments and logistics |
| Reported active users | More than 15 million in early 2026 |
| Merchant network | More than 250,000 business owners listed on its merchant app |
| FY24 operating revenue | ₹870 crore |
Magicpin’s official information identifies Anshoo Sharma as its co-founder and CEO. The company was established in 2015 and operates through Samast Technologies Private Limited. Its merchant app listed more than 250,000 participating business owners, while a company guide published in 2026 claimed more than 15 million active users.
The ₹870 crore revenue figure is from FY24, the latest complete financial year for which detailed publicly reported figures were found. Magicpin’s operating revenue had increased from ₹297 crore in FY23.
What Is Magicpin’s Business Model?
Magicpin follows a hyperlocal marketplace and marketing-platform model. It does not generally own the restaurants, fashion outlets, pharmacies or grocery stores displayed on its app. Instead, it helps these businesses become more visible and complete transactions with nearby customers.
Consumers are attracted through discounts, vouchers, cashback and MagicPoints. Merchants participate because the platform can provide customer discovery, online ordering, payments, promotional tools and business insights.
The platform benefits from a network effect. More merchants provide customers with greater variety and better offers. More active customers make the platform more valuable to merchants and consumer brands.
Magicpin also participates in the Open Network for Digital Commerce, or ONDC. Through this network, customers can place orders with participating restaurants and sellers while Magicpin provides buyer-facing or seller-facing technology and related services.
How Does Magicpin Make Money?
1. Sale of Brand Vouchers
Vouchers and gift cards have historically been Magicpin’s largest reported revenue source. Customers purchase discounted vouchers for restaurants, fashion retailers, online stores and other brands.
Magicpin first obtains vouchers from participating brands or authorised partners and then sells them to customers. It can earn through the difference between the voucher’s procurement cost and the amount received from the customer.
Voucher sales contributed approximately 92% of Magicpin’s operating revenue in FY24. However, this does not mean that 92% of the revenue was profit. Voucher procurement was also the company’s largest expense, accounting for about 80.7% of its total FY24 expenditure.
For example, Magicpin may offer a voucher worth ₹1,000 at a discounted customer price. Its actual earning depends on the price at which it obtained the voucher, the discount funded by the brand, reward points used and other transaction costs.
2. Merchant Commissions
Magicpin can charge merchants commissions or transaction-based fees for orders and business generated through the platform.
Commission arrangements may differ by merchant category, services used and commercial agreement. Magicpin’s merchant onboarding page promotes zero commission for the first 30 days and describes its regular model as involving minimum commission. This indicates that charges may begin after the introductory period.
For a food order, the customer pays the order amount through the platform. Magicpin transfers the merchant’s settlement after deducting any agreed commission, delivery expenses, taxes, discounts or other applicable charges.
3. Advertising and Sponsored Visibility
Local businesses can pay Magicpin for increased visibility. The company offers merchant plans that include features such as promotional campaigns, top-pick placement, push notifications and keyword advertising.
Its publicly displayed merchant plans include Silver, Gold and Platinum packages. The listed annual prices were ₹1,500, ₹3,500 and ₹7,000 respectively, although prices and features may change.
Sponsored visibility helps merchants appear before users who are already searching for restaurants, shopping or services in a particular area. For Magicpin, digital promotion can provide better margins than businesses involving physical voucher procurement or delivery.
4. Performance Marketing for Brands
Large consumer brands pay Magicpin to increase product sales through local retailers. The platform can target customers based on factors such as locality, category interest and shopping behaviour.
Magicpin says its brand partners pay fees for measurable sales growth. Part of the campaign amount may be passed to retailers as incentives and to customers as discounts or rewards. Magicpin retains its agreed share for managing the campaign, technology and measurement.
The company also works on pay-per-conversion arrangements in which a brand pays when a campaign produces a measurable purchase rather than merely displaying an advertisement. In FY25, Magicpin said its fashion platform helped partner brands generate around ₹1,000 crore in business.
5. ONDC Order Facilitation
Magicpin earns from orders processed through ONDC by providing technology, merchant onboarding, order management and transaction facilitation.
ONDC is an open commerce network rather than one shopping application. Magicpin can participate as an application that connects customers or merchants with other network participants.
Its merchant platform describes Magicpin as a major ONDC seller app. The company’s consumer guide said users could access more than 22,000 restaurants through its ONDC food-delivery service in 2026.
Magicpin’s income from this business can include commissions and other service fees. Earlier financial reporting also identified ONDC-linked incentives or subsidies as a smaller revenue contributor.
6. Delivery and Logistics Services
Magicpin operates a logistics service called magicFleet. It connects delivery partners with restaurants, sellers and customers for last-mile order fulfilment.
The business can earn delivery charges, platform-service fees and other logistics-related payments. MagicFleet’s terms allow Magicpin to charge delivery partners onboarding, training, support or platform-service fees under applicable arrangements.
MagicFleet was launched in September 2024 and had reportedly onboarded more than 100,000 riders by June 2025. It was operating in seven major metropolitan markets and was targeting two million monthly deliveries by the end of FY26.
Building its own logistics network can help Magicpin reduce dependence on outside delivery companies. However, it must balance delivery income against rider payments, incentives, support and technology costs.
7. Corporate Gifting and Employee Rewards
Magicpin provides corporate gifting and employee-reward solutions. Companies can purchase brand vouchers for employee recognition, birthdays, festivals, town halls and promotional programmes.
Magicpin earns from bulk voucher transactions and customised corporate solutions. It may receive preferential prices from brands and offer corporate customers discounted voucher packages while retaining a margin.
Its corporate service includes a self-service ordering portal, bulk discounts, customised programmes and dedicated account management.
Magicpin’s Major Operating Costs
Voucher procurement is Magicpin’s largest reported expense because the company must obtain the gift cards and coupons it sells to users.
Other important operating costs include:
- Delivery-partner payments and incentives
- Customer cashback and MagicPoints
- Advertising and promotional offers
- Employee salaries and benefits
- Technology, servers and software
- Payment-gateway charges
- Merchant and customer support
- Refunds and fraud prevention
- Legal and administrative expenses
Magicpin’s total FY24 expenditure reached approximately ₹961 crore. The company reduced its loss by about 25% to ₹78 crore, excluding employee stock-option expenses in the reported calculation. Its adjusted EBITDA margin improved significantly but remained negative.
Why the Model Can Become Profitable
Magicpin can benefit from scale because its technology platform can serve additional users and merchants without costs rising at exactly the same rate.
Vouchers encourage customers to pay before shopping, while merchant and brand campaigns generate business-to-business revenue. Advertising, subscriptions and data-led promotions may also offer stronger margins than voucher sales.
ONDC and magicFleet provide additional growth opportunities. Magicpin can earn from customer discovery, merchant transactions and delivery without owning restaurant kitchens or most of the products being sold.
The business becomes more profitable when it increases high-margin advertising and commission income, negotiates better voucher-purchase terms and reduces the amount spent on discounts for each completed transaction.
Main Challenges in Magicpin’s Business Model
Magicpin competes with food-delivery platforms, payment apps, e-commerce marketplaces, coupon websites and brand-owned loyalty programmes.
Discounts and cashback attract customers, but excessive promotions can reduce margins. The company must ensure that users continue transacting even when incentives are reduced.
The voucher business generates high reported revenue but also carries high procurement costs. Revenue growth therefore does not automatically produce an equal increase in gross profit.
Delivery services create additional challenges involving rider availability, order delays, cancellations, weather, traffic and customer complaints. ONDC volumes can also be affected by changes in incentives and competition among participating apps.
Magicpin must also prevent fraudulent bills, fake transactions and misuse of cashback accounts. Its terms include usage limits and allow accounts to be suspended when suspicious activity is detected.
FAQs
Are MagicPoints the same as money in a bank account?
No. MagicPoints are platform reward points. They can be used for eligible vouchers, offers and services according to Magicpin’s redemption rules. Their validity and permitted uses may be restricted.
Can every Magicpin voucher be used both online and in stores?
No. Redemption conditions differ by voucher and brand. Some vouchers work only at physical stores, while others may be limited to a website, app, particular outlet or selected city.
Does Magicpin own the restaurants listed on its app?
Generally, no. Restaurants and stores are independent businesses. Magicpin provides discovery, offers, payment, ordering, marketing or delivery services.
Is Magicpin the same company as ONDC?
No. ONDC is an open digital-commerce network. Magicpin is one of the applications and service providers participating in that network.
Does every merchant pay Magicpin the same commission?
No. The amount may depend on the merchant’s category, order type, location, promotional plan and commercial agreement. Some merchants may also receive an introductory zero-commission period.
Conclusion
Magicpin makes money primarily from selling brand vouchers and earning margins on those transactions. Merchant commissions, advertising plans, performance-marketing campaigns, ONDC orders, logistics services and corporate gifting provide additional revenue.
Its model works by giving consumers savings while helping merchants and brands attract measurable business. Long-term profitability will depend on increasing higher-margin services, controlling voucher and delivery costs, reducing dependence on discounts and maintaining trust among customers, retailers and delivery partners.nted vouchers for restaurants, fashion retailers, online stores and other brands.
Magicpin first obtains vouchers from participating brands or authorised partners and then sells them to customers. It can earn through the difference between the voucher’s procurement cost and the amount received from the customer.
Voucher sales contributed approximately 92% of Magicpin’s operating revenue in FY24. However, this does not mean that 92% of the revenue was profit. Voucher procurement was also the company’s largest expense, accounting for about 80.7% of its total FY24 expenditure.
For example, Magicpin may offer a voucher worth ₹1,000 at a discounted customer price. Its actual earning depends on the price at which it obtained the voucher, the discount funded by the brand, reward points used and other transaction costs.
2. Merchant Commissions
Magicpin can charge merchants commissions or transaction-based fees for orders and business generated through the platform.
Commission arrangements may differ by merchant category, services used and commercial agreement. Magicpin’s merchant onboarding page promotes zero commission for the first 30 days and describes its regular model as involving minimum commission. This indicates that charges may begin after the introductory period.
For a food order, the customer pays the order amount through the platform. Magicpin transfers the merchant’s settlement after deducting any agreed commission, delivery expenses, taxes, discounts or other applicable charges.
3. Advertising and Sponsored Visibility
Local businesses can pay Magicpin for increased visibility. The company offers merchant plans that include features such as promotional campaigns, top-pick placement, push notifications and keyword advertising.
Its publicly displayed merchant plans include Silver, Gold and Platinum packages. The listed annual prices were ₹1,500, ₹3,500 and ₹7,000 respectively, although prices and features may change.
Sponsored visibility helps merchants appear before users who are already searching for restaurants, shopping or services in a particular area. For Magicpin, digital promotion can provide better margins than businesses involving physical voucher procurement or delivery.
4. Performance Marketing for Brands
Large consumer brands pay Magicpin to increase product sales through local retailers. The platform can target customers based on factors such as locality, category interest and shopping behaviour.
Magicpin says its brand partners pay fees for measurable sales growth. Part of the campaign amount may be passed to retailers as incentives and to customers as discounts or rewards. Magicpin retains its agreed share for managing the campaign, technology and measurement.
The company also works on pay-per-conversion arrangements in which a brand pays when a campaign produces a measurable purchase rather than merely displaying an advertisement. In FY25, Magicpin said its fashion platform helped partner brands generate around ₹1,000 crore in business.
5. ONDC Order Facilitation
Magicpin earns from orders processed through ONDC by providing technology, merchant onboarding, order management and transaction facilitation.
ONDC is an open commerce network rather than one shopping application. Magicpin can participate as an application that connects customers or merchants with other network participants.
Its merchant platform describes Magicpin as a major ONDC seller app. The company’s consumer guide said users could access more than 22,000 restaurants through its ONDC food-delivery service in 2026.
Magicpin’s income from this business can include commissions and other service fees. Earlier financial reporting also identified ONDC-linked incentives or subsidies as a smaller revenue contributor.
6. Delivery and Logistics Services
Magicpin operates a logistics service called magicFleet. It connects delivery partners with restaurants, sellers and customers for last-mile order fulfilment.
The business can earn delivery charges, platform-service fees and other logistics-related payments. MagicFleet’s terms allow Magicpin to charge delivery partners onboarding, training, support or platform-service fees under applicable arrangements.
MagicFleet was launched in September 2024 and had reportedly onboarded more than 100,000 riders by June 2025. It was operating in seven major metropolitan markets and was targeting two million monthly deliveries by the end of FY26.
Building its own logistics network can help Magicpin reduce dependence on outside delivery companies. However, it must balance delivery income against rider payments, incentives, support and technology costs.
7. Corporate Gifting and Employee Rewards
Magicpin provides corporate gifting and employee-reward solutions. Companies can purchase brand vouchers for employee recognition, birthdays, festivals, town halls and promotional programmes.
Magicpin earns from bulk voucher transactions and customised corporate solutions. It may receive preferential prices from brands and offer corporate customers discounted voucher packages while retaining a margin.
Its corporate service includes a self-service ordering portal, bulk discounts, customised programmes and dedicated account management.
Magicpin’s Major Operating Costs
Voucher procurement is Magicpin’s largest reported expense because the company must obtain the gift cards and coupons it sells to users.
Other important operating costs include:
- Delivery-partner payments and incentives
- Customer cashback and MagicPoints
- Advertising and promotional offers
- Employee salaries and benefits
- Technology, servers and software
- Payment-gateway charges
- Merchant and customer support
- Refunds and fraud prevention
- Legal and administrative expenses
Magicpin’s total FY24 expenditure reached approximately ₹961 crore. The company reduced its loss by about 25% to ₹78 crore, excluding employee stock-option expenses in the reported calculation. Its adjusted EBITDA margin improved significantly but remained negative.
Why the Model Can Become Profitable
Magicpin can benefit from scale because its technology platform can serve additional users and merchants without costs rising at exactly the same rate.
Vouchers encourage customers to pay before shopping, while merchant and brand campaigns generate business-to-business revenue. Advertising, subscriptions and data-led promotions may also offer stronger margins than voucher sales.
ONDC and magicFleet provide additional growth opportunities. Magicpin can earn from customer discovery, merchant transactions and delivery without owning restaurant kitchens or most of the products being sold.
The business becomes more profitable when it increases high-margin advertising and commission income, negotiates better voucher-purchase terms and reduces the amount spent on discounts for each completed transaction.
Main Challenges in Magicpin’s Business Model
Magicpin competes with food-delivery platforms, payment apps, e-commerce marketplaces, coupon websites and brand-owned loyalty programmes.
Discounts and cashback attract customers, but excessive promotions can reduce margins. The company must ensure that users continue transacting even when incentives are reduced.
The voucher business generates high reported revenue but also carries high procurement costs. Revenue growth therefore does not automatically produce an equal increase in gross profit.
Delivery services create additional challenges involving rider availability, order delays, cancellations, weather, traffic and customer complaints. ONDC volumes can also be affected by changes in incentives and competition among participating apps.
Magicpin must also prevent fraudulent bills, fake transactions and misuse of cashback accounts. Its terms include usage limits and allow accounts to be suspended when suspicious activity is detected.
Conclusion
Magicpin makes money primarily from selling brand vouchers and earning margins on those transactions. Merchant commissions, advertising plans, performance-marketing campaigns, ONDC orders, logistics services and corporate gifting provide additional revenue.
Its model works by giving consumers savings while helping merchants and brands attract measurable business. Long-term profitability will depend on increasing higher-margin services, controlling voucher and delivery costs, reducing dependence on discounts and maintaining trust among customers, retailers and delivery partners.
FAQs
Q. Are MagicPoints the same as money in a bank account?
No. MagicPoints are platform reward points. They can be used for eligible vouchers, offers and services according to Magicpin’s redemption rules. Their validity and permitted uses may be restricted.
Q. Can every Magicpin voucher be used both online and in stores?
No. Redemption conditions differ by voucher and brand. Some vouchers work only at physical stores, while others may be limited to a website, app, particular outlet or selected city.
Q. Does Magicpin own the restaurants listed on its app?
Generally, no. Restaurants and stores are independent businesses. Magicpin provides discovery, offers, payment, ordering, marketing or delivery services.
Q. Is Magicpin the same company as ONDC?
No. ONDC is an open digital-commerce network. Magicpin is one of the applications and service providers participating in that network.
Q. Does every merchant pay Magicpin the same commission?
No. The amount may depend on the merchant’s category, order type, location, promotional plan and commercial agreement. Some merchants may also receive an introductory zero-commission period.
