Magic raises $52m in strategic funding round

Magic, a wallet-as-a-service (WaaS) provider, has raised $52m (£42m/€49m) in a strategic funding round led by PayPal Ventures, with participation from Cherubic, Synchrony, KX, Northzone, and Volt Capital.

The latest round brings the total raised to over $80m.

Magic works with companies that are looking for a way to incorporate Web3 into their offerings. Magic provides an enterprise-grade, low-effort solution for Web3 migration that can help with customer loyalty programmes, digital collectibles, employee recognition, ticketing, memberships and more.

The San Francisco-headquartered business has already worked with brands such as Mattel, Macy’s, Xsolla, Immutable and more.

Sean Li, Magic’s co-founder and chief executive, said: “Since launching in 2018, we have witnessed a steady increase in Web3 use-cases among large enterprises across a wide variety of verticals. Global brands have realised the potential of blockchain beyond crypto and are utilising it to engage with their customers and monetise the experience in new ways. Magic is working closely with Fortune 500 companies to bring their Web3 use cases to everyday users.

“Our vision is to ignite new economic opportunities by enabling authentic digital ownership for everyone – starting with building the necessary infrastructure to onboard the next billion users to Web3. With this new funding, we’re focused on expanding functionality and enabling growing use cases to continue delivering more value to our customers. We are also looking forward to making a deeper integration within the EU and APAC.”

Alan Du, partner at PayPal Ventures, added: “Mass adoption of Web3 is a hot topic, and Magic is facilitating this with a safe and simple solution. Magic’s wallet creation service allows companies to reach millions of users on their apps and onboard customers who are new to Web3. We’re proud to be investing in Magic and believe the company will help drive the growing number of Web3 use-cases amongst global brands.”