Fintech POP raises $30 mn from Razorpay to build loyalty-first model

POP to use Razorpay's $30 million investment to drive innovation, expand rewards ecosystem, and deepen merchant ties in the fast-growing D2C payments segment

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Consumer payments application POP raised $30 million from business-to-business (B2B) fintech Razorpay on Thursday, a year after the company launched its operations on India’s real-time payments system, Unified Payments Interface (UPI).

 

The investment will enable Razorpay to expand its presence in the business-to-consumer (B2C) segment.

 

POP has previously raised funding from investors including India Quotient, Unilever Ventures, Incubate Fund and NuVentures.

 

The third-party UPI player said it will use the capital raised to strengthen product innovation, focus on rewards and deepen merchant partnerships across direct-to-consumer (D2C) and lifestyle segments. 

 

Since the year of its launch, the fintech firm has clocked over 6 lakh daily UPI transactions, crossed 1 million unique monthly active transactors and executed over two lakh monthly commerce shipments. It claims to have more than 40,000 RuPay credit cards in a co-branded partnership with Yes Bank.

 

“India doesn't need another cashback-only rewards app. What we need is a new rewards economy built on a long-term purpose. POPcoins are designed to build habits, increase retention and reduce CAC (customer acquisition cost) for merchants — all while making payments more rewarding for the end user,” said Bhargav Errangi, Founder, POP.

 

He added that the company will double down on a loyalty-first payments ecosystem after Razorpay’s investment.

 

In May, the company clocked 13.5 million UPI transactions. It is ranked 21st on the UPI leaderboard, which is currently dominated by PhonePe and Google Pay.

 

“Our investment in POP is driven by a clear purpose and that is to serve D2C merchants better. In today’s crowded D2C space, brands need more than just payment solutions; they need tools to earn trust, drive repeat purchases and build real loyalty,” said Harshil Mathur, Co-founder and Chief Executive Officer (CEO), Razorpay.