The food delivery business of hyperlocal delivery startup magicpin turned Ebitda (earnings before interest, tax, depreciation and amortisation) positive in the April-June quarter as it increased focus on the value segment.
“We are now Ebitda positive in the food delivery business,” Anshoo Sharma, co-founder and CEO of magicpin told FE in an interaction.
He added that in the last five quarters, the food delivery business had grown three times. However, he did not disclose the monthly order value of the business.
Sharma said the company’s focus now is on the value segment, which provides better visibility to hyperlocal food joints and caters to a larger customer base.
The Gurugram-based delivery company offers value meals from local food joints through its magic9 service. Based on the pin code, food items on magic9 can be found at a price as low as Rs 35.
The lower end of the market has also been targeted by magicpin’s peer Swiggy recently. Earlier this week, Swiggy announced a new section called “99 Store” on its food-on-demand delivery application. It features single meals priced at Rs 99.
Sharma said that while it is difficult to build a food delivery business at a national level, there is scope for several regional players to co-exist.
Magicpin’s quick food delivery offering magicNOW, launched in December last year, has also seen good traction. It currently accounts for 13% of all food orders on the platform and is likely to touch 20% by the end of 2025-26.
Sharma said the firm was attempting to increase the speed of delivery via technology improvement, but would not operate its own dark kitchens. “We will only partner with local players for this,” he said.
magicpin has also extended its 100,000 rider-strong fleet to other businesses. Its logistics arm magicfleet recently crossed one million monthly deliveries.
Other businesses like SMEs and food joints can leverage magicfleet in seven metro cities— Delhi NCR, Bengaluru, Pune, Hyderabad, Chennai, Kolkata, and Mumbai.
While three-wheeler and four-wheeler logistics have, of late, witnessed a rising interest from several companies, Sharma said that magicpin will focus only on two-wheeler riders.