San Francisco-based crypto wallet company, Magic, has successfully secured $52 million in funding, with PayPal Ventures leading the investment round, which also invested in Tabby, a Klarna-rival, earlier this year. The funding has brought the company’s valuation close to $500 million, solidifying its position as a key player in the crypto industry.
Alongside PayPal Ventures, mainstream venture capital firms such as Cherubic, Synchrony, KX, Northzone, and Volt Capital participated in the funding round. This infusion brings Magic’s total funding to $80 million and positions the company for further expansion.
With the newfound capital, Magic aims to enhance its functionality and enable growing use cases, delivering even more value to its customers. The company also plans to deepen its integration within the European Union and Asia-Pacific regions, tapping into new markets and opportunities.
The global market for Web 3.0 blockchain technology reached $1.73 billion in 2022 and is expected to experience a remarkable compound annual growth rate (CAGR) of 47.1% from 2023 to 2030. This growth is driven by the increasing demand for data privacy through decentralised identity and advancements in internet technology.
In today’s landscape, numerous large enterprises across diverse industries are embracing web3 use cases, reflecting a steady upward trend. Recognising the potential of blockchain beyond cryptocurrencies, global brands are leveraging this technology to enhance customer engagement and explore innovative monetisation avenues, expanding their horizons.
Amid this surge, Magic, a wallet-as-a-service provider, emerged with a vision to simplify Web3 development and offer a user-friendly experience for integrating blockchain and decentralised technologies into web applications. The company aims to bridge the gap by providing a platform that abstracts the complexities of Web3 development, facilitating easier integration of blockchain functionality for developers.
Crypto and Web3 wallet providers have attracted significant funding in recent years. Notable examples include ConsenSys‘ self-custodial wallet MetaMask, which raised $450 million last year, as well as Ledger, a crypto wallet provider that secured $109 million, and BitKeep, which raised $30 million earlier this year. Now, Magic has joined the ranks with an impressive $52 million funding round.
Sean Li, co-founder and CEO of Magic, expressed enthusiasm about working closely with Fortune 500 companies to bring web3 use cases to everyday users. Magic’s overarching vision is to ignite economic opportunities by enabling authentic digital ownership for everyone, starting with building the necessary infrastructure to onboard the next billion users to web3.
Alan Du, Partner at PayPal Ventures, highlighted the significance of mass adoption of web3 and commended Magic for its safe and simple solution. He emphasised that Magic’s wallet creation service empowers companies to reach millions of users on their apps and onboard customers who are new to web3. PayPal Ventures is proud to invest in Magic and believes the company will contribute to the growing number of web3 use cases among global brands.
Founded in 2018 as Fromatic by Arthur Jen, Jaemin Jin, and Sean Li, Magic rebranded itself in 2020 and currently provides a decentralised authentication platform for web3 applications. The company’s primary focus is to simplify web3 wallet creation and onboarding processes.
Magic offers secure, seamless, and near-instant non-custodial wallet creation. By implementing Magic’s Software Development Kit (SDK) into a vendor’s code base, wallets can be created instantly through existing email, social, SMS, or federated logins. The company’s patented technology ensures unparalleled scalability and gives users complete control.
