Zomato shares rise over 4% in two days as Magicpin likely to launch IPO in 2025: Report

Another e-commerce company seems to be eyeing a seat on the IPO (initial public offering) bus, as Magicpin is reportedly planning to go public in 2025.

According to a Moneycontrol report, hyperlocal retail firm Magicpin has initiated discussions to appoint investment banks and law firms for the proposed IPO.

The report added that it is still early days, and the size and timing of the public issue have not been finalised yet.

“There are several VC (venture capital) funds, angel investors and investors like Zomato on the cap table, so the eventual deal size will depend on how much stake these guys want to dilute through the IPO. Those details will be finalised closer to filing the DRHP (draft red herring prospectus),” the report said, quoting one of the people aware of the matter.

Magicpin, the leading online location intelligence platform, connects customers with local big and small retailers, driving the discovery of brands and sellers across categories like fashion, food, electronics, grocery, pharmacy, spa, nightlife, entertainment and more. It creates value for all in the hyperlocal retail ecosystem and allows them to leverage the digital world.

Customers who shop at local stores are rewarded with savings and points on their purchases, which they can use to shop more at all stores. Therefore, customers get savings, discounts, vouchers, and rewards for shopping locally.

Earlier in December, Magicpin entered the ultra-fast food delivery market with its newly launched service, MagicNow.

MagicNow promises to deliver freshly prepared food to customers within 15 minutes, catering to the growing demand for instant food delivery in urban areas. The pilot programme has been launched in major cities, including Bengaluru, Hyderabad, Mumbai, Chennai, Delhi-NCR, and Pune.

After the launch of MagicNow, Magicpin claims to be India’s third-largest food delivery app and the largest local savings super-app for offline and physical retail, including local stores.

It is also backed by leading VC firms and startups, such as Lightspeed Venture Partners, Waterbridge Ventures and Zomato.

Data with the Registrar of Companies (RoC) shows that Lightspeed Venture Partners is the biggest shareholder in Magicpin with a 36% stake, while Zomato held a 16.95% stake as of March 2023. Magicpin’s founders, Anshoo Sharma and Brij Bhushan, held 14.92% each. Notably, Brij Bhushan left the company in April 2024 to join an early-stage venture capital fund.