Magic Raises $10M Seed Funding to Expand AI Hospitality Solutions

Magic, a New York-based AI company, has raised $10 million in seed funding led by Lerer Hippeau, with participation from Bling Capital, Floodgate, and strategic investors Major Food Group and VCR Group. The funding will support expanding Magic's team and developing new AI-driven products across hospitality sectors such as hotels, retail, real estate, and wellness. Magic’s flagship product, Loyalist, is an AI-powered CRM platform that integrates restaurant technologies like reservations, point-of-sale systems, and social media into a unified system to deliver personalized guest experiences at scale. Loyalist is currently used by hundreds of top restaurants, including Major Food Group, Momofuku, Le Bernardin, COTE, and Daniel Boulud’s The Dinex Group, managing tens of millions of guest interactions annually and representing over $2 billion in guest spending. Founder and CEO Maggie Tang emphasizes the goal of using AI to enhance authentic human connections in service industries, which have largely remained analog despite AI advances elsewhere. The platform's rapid growth—over 10x revenue increase in the past year—demonstrates strong market demand for AI personalization in hospitality.