The company claims to have onboarded 1,00,000 merchants and is about to reach gross merchandise value (GMV) of $1 billion this month. GMV is the total value of merchandise sold over a period.
“We were growing at a run rate of $1 billion GMV between last February (2019) to this February (2020). There was some impact of COVID-19, but we are now back on track of reaching $1 billion GMV this month,” said Anshoo Sharma, co-founder and CEO, Magicpin.
“In next 12 months, we again expect to see 5 times growth across board and reach $5 billion GMV,” he added. The company’s app functions as a search engine for retailers and manufacturers who are not available online.
Sharma said the company has now started digitising retailers and manufacturers to enable them to sell products online as well which has accelerated the pace of merchant acquisition. “Now we are making offline stores go online. Food category merchants were already having catalogue ready which they were using for other platforms.
“In other categories, customers send their list to the retailers in a messenger like interface. The retailers get back with exact prices of each article in a bill after this the customer pays for it,” he said.
The cost of acquisition of customers has dropped with the start of online initiative, Sharma said. “The range at which we are growing, we will be able to double 1,00,000 merchants to 2,00,000 on Magicpin by the end of this year. The whole macro environment being very conducive leading to adoption online is the tailwind which we are riding on,” Sharma said.
Magicpin plans to strengthen its presence in top 50 cities where it is present in next 12 months and thereafter expand to next top 50 cities. The company charges a percentage of the business merchants get through Magicpin as fee.