Magic Crate is a Bangalore-based education startup for kids (0-15 Yrs). The startup includes DIY learning, fun activities, creative arts & crafts, problem-solving, and much more. The childhood learning brand was launched in 2015 by IIT-IIM alumnus Viswanath Ramakrishnan and former consultant Karthik Lakshman.
The education company has a multi-disciplinary crew of early childhood specialists, products designers, digital marketers, and toy and game designers. They started as a crew of five people and now has more than 135 employees working currently.
The magic crate offers a monthly activity subscription boxes for kids and ships them to customers with three to four engrossing activities and exercises which are based on science, arts, role play, and games. The box also includes storybooks and activity rewards for kids.
“Our products not only teach essential skills like critical judgment, problem resolving, and out of the box thinking, but also allows parents to indulge their kids in a fun manner. We use the new in design thinking and tutelage research to set up enthralling learning experiences for kids of the age group of 0 to 15 years. Since day one, our primary target has been on customers responses and feedback. We will continue to do this thing as we grow our business,” says Viswanathan.
Last year, the Magic crate had raised an undisclosed amount of funds in its third round of funding led by FireSide Ventures. The company’s existing investor 3one4 Capital was also a part of this funding round. The company utilized these funds in the development of a new range of products, product branding, and also to grow the sales channel.
Viswanathan aforesaid, “Research shows concerning seventy to eightieth of traditional human brain development happens before the age of eight. it’s an on the spot reference to what they’re up-to-date with, throughout that amount of life. we have a tendency to as an organization is making an attempt to resolve this issue for scores of oldsters round the world, United Nations agency square measure busy, however well-purposed oldsters.”
The education startup offers three-month, six-month and 12-months of subscription plans. The average cost of Magic crate box is around Rs. 500 per month. The company claims to have delivered over five lakh crates and is estimating a growth rate of 100%. It is also on the verge of touching over 70 thousand shipments per month.
“Within the period of last three years ever since our product got launched, it has impacted more than one lakh kids, and have generated an annual revenue over $2 million,” Viswanathan later added.
The co-founder and COO, Karthik Lakshman said, Magic Crate has been unit profitable for over a period of 12 months with more than 50 percent gross margins. With this business vertical growth as well as strong economics, We are now working on introducing new exciting products to our customers base and the new funding round would help us in accelerating our efforts.”
According to a report, the global educational toys market is expected to grow at a CARC of almost 10% until 2021. The market competition for Magic Crates is Einstein Box, SP Robotics work, Small Brown Box, Canary rate, Flintbox, Podsquad, Butterfly Fields, Xplorabox, and more.
