POP: The Rewards-First UPI Payments App Boosts Growth with $30 Million Investment
POP, the rewards-first UPI payments application, has successfully raised $30 million from Razorpay, marking a significant step towards enhancing its payments and commerce platform. This investment allows Razorpay to secure a majority stake in the Bengaluru-based company.
While POP has not disclosed additional details regarding the transaction, it will continue to function as a distinct entity within the marketplace. In June of the previous year, POP raised $2.4 million in its seed funding round, which was spearheaded by India Quotient alongside several eminent angel investors.
The new funds will be directed towards refining its offerings, expanding its merchant network, and bolstering its rewards program.
Rapid Growth of POP’s UPI Platform
POP launched its UPI platform in June 2024 and has quickly established itself by claiming to surpass 600,000 daily transactions and achieve 1 million unique monthly transactions within its inaugural year. The company reports fulfilling 200,000 orders and issuing over 40,000 RuPay credit cards in collaboration with Yes Bank.
Innovative Rewards with POPcoins
A standout feature of POP is POPcoins, a multi-brand rewards currency that consumers can earn while making payments or shopping on the platform. Users have the flexibility to redeem these POPcoins across POP’s extensive merchant network, providing them with valuable incentives.
Razorpay’s Strategic Investment in POP
Razorpay’s investment in POP broadens its range of services to include loyalty, engagement, and commerce. The integration of POP’s payments and rewards ecosystem enables merchants to incentivise transactions and payments effectively.
In a previous transaction during September 2022, Razorpay acquired PoshVine to enhance its loyalty and rewards capabilities within its payments stack. By onboarding POP, Razorpay will now be able to offer payments, loyalty, and engagement solutions all within a unified platform.
Razorpay’s Corporate Developments
This development coincides with Razorpay’s recent announcement regarding its decision to return its domicile to India from the United States. Although the company does not have immediate plans for a public listing, it has successfully completed crucial regulatory milestones, which include its transition into a public limited company and obtaining approval for the merger of Razorpay Inc. with Razorpay India.
Razorpay remains a standout player in the fintech industry, being one of the few profitable unicorns, and reporting revenues of Rs 2,068 crore along with a profit of Rs 35 crore in FY24. The company is yet to release its results for FY25.