Magicpin, an e-commerce startup based in Gurugram, has recently emerged as a significant player on the Open Network for Digital Commerce (ONDC), driving a staggering 90% of the platform’s retail transactions.
On April 30, when ONDC reported 11,000 retail transactions, Magicpin proudly claimed to have facilitated 10,000 of those transactions. This revelation has raised eyebrows in the tech ecosystem, as Magicpin seemed to overshadow fintech giants like PhonePe and Paytm.
Magicpin serves the ONDC network in three ways. It is the largest seller-side app, with a roster of 40,000 sellers. These apps connect sellers to the ONDC network, digitise catalogues, and facilitate payments, ensuring quality fulfilment with e-commerce best practices.
Additionally, Magicpin operates as a logistics aggregator, assigning orders to various last-mile delivery companies. Finally, it provides technology services for buyer-side apps, offering a ready-to-use interface for platforms wanting to join the ONDC network.
These various touchpoints allow Magicpin to monetise its involvement with ONDC, charging fees for each order, passing orders to logistics providers, and offering its platform to buyer-side apps on a per-order or software-as-a-service (SaaS) basis.
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The company’s CEO, Anshoo Sharma, revealed plans to sell the plug-and-play software platform to banks and consumer-tech apps interested in joining the ONDC network. Furthermore, Magicpin aims to become a buyer-side app on the network, expanding its seller base from its current 40,000 restaurant merchants to over 250,000 sellers across various categories.
Despite the opportunities that ONDC presents, Sharma does not consider this a pivot for Magicpin. Since its inception in 2015, Magicpin has functioned as an online classifieds portal for hyperlocal deals. However, the startup had to transition to e-commerce deliveries in 2020 due to pandemic-induced lockdowns.
Today, Magicpin boasts a $3 billion annualised gross merchandise volume (GMV), with 10 million active users completing at least six transactions monthly. The company plans to hit a GMV of $12 billion by the end of 2024 and achieve profitability by mid-next year.
While the company’s involvement in ONDC has yet to reflect in its financial figures, Sharma acknowledges the potential impact it may have. As for future fundraising, Magicpin, having raised $61 million in its last Series D round led by Zomato, is open to opportunities but maintains that it is not a priority.
