Razorpay Invests $30 Million in Fintech Startup POP To Expand into B2C Space

In a strategic move to strengthen its foothold in the B2C (business-to-consumer) space, Razorpay has invested $30 million in POP, a 2-year-old fintech startup based in Bengaluru. This investment is set to bolster Razorpay’s expansion plans, particularly in the consumer payments and loyalty sector.

POP’s Journey and Offerings

Founded in 2023 by Bhargav Errangi, a former Flipkart executive, POP has quickly emerged as a unique player in the fintech space. The startup, which offers a rewards-first UPI payments platform, processes over 600,000 daily UPI transactions and has garnered more than 1 million unique monthly active users. POP’s key offering, Popcoins, is a multi-brand rewards currency that users earn through transactions and can redeem across a network of partner merchants.

The platform has also issued 40,000 RuPay credit cards in partnership with Yes Bank, further establishing its presence in the financial services space.

Why the Investment?

Razorpay’s $30 million investment in POP addresses two major pain points in the digital commerce ecosystem:

1. High Customer Acquisition Costs (CAC): With rising costs for businesses to acquire and retain customers, POP’s rewards system provides a more cost-effective way to boost customer loyalty.
2. Ineffective Loyalty Programs: Many rewards programs in the market fail to engage customers meaningfully. POP’s system, which directly ties rewards to transaction behavior, offers a more engaging and valuable experience for users.

By incorporating POP’s rewards platform into its own payment infrastructure, Razorpay aims to help businesses enhance customer loyalty, improve engagement, and reduce acquisition costs.

Statements from Leadership

Harshil Mathur, CEO and co-founder of Razorpay, highlighted the strategic value of the investment:

“POP’s ability to integrate instant rewards, seamless payments, and brand discovery in one platform offers businesses an effective way to turn everyday transactions into long-lasting customer relationships.”

Bhargav Errangi, founder of POP, expressed the vision behind the startup’s approach:

“Our goal with Popcoins is to reduce CAC, drive customer retention, and create a more rewarding payments experience for users—all while making transactions smoother and more engaging.”

The Future of POP and Razorpay

With Razorpay’s backing, POP plans to:

• Enhance its rewards program and product offerings to attract a broader consumer base.
• Expand its merchant partnerships, particularly in direct-to-consumer and lifestyle sectors.
• Scale its operations using Razorpay’s infrastructure to further enhance user experience and operational efficiency.

This partnership positions both companies to leverage the growing demand for integrated payment and loyalty solutions in India’s rapidly evolving digital economy, making it a promising venture for the future of fintech in the country.