The rewards-focused UPI payments app POP has raised $30 million from Razorpay, which now owns the majority of the Bengaluru-based startup.
POP didn’t share more details about the deal but said it will keep running as its own company.
Last June, POP raised $2.4 million in seed funding led by India Quotient and some well-known angel investors. The new money will help POP improve its products, grow the number of merchants using the app, and make its rewards program better.
POP launched its UPI platform in June 2024. Within the first year, it says it has handled over 600,000 daily transactions and more than 1 million unique transactions every month.
The company also says it completed 200,000 orders and helped issue over 40,000 RuPay credit cards in partnership with Yes Bank.
POP’s key feature is POPcoins, a reward currency that users earn when they pay or shop on the app. People can use these POPcoins to get discounts or deals at many stores that work with POP, making it easy and valuable to save money.
Razorpay’s investment in POP helps it offer more services like loyalty programs, customer engagement, and shopping options. POP’s system lets merchants give rewards directly when customers make payments.
In September 2022, Razorpay bought PoshVine to add loyalty and rewards to its payment services. Now, with POP, Razorpay can provide merchants with payments, loyalty, and engagement all in one easy-to-use platform.
This investment also means Razorpay is entering the consumer UPI payments market. Last year, another big fintech company, BharatPe, started offering consumer payments by changing the name of its PostPe app.
Razorpay recently announced that it is moving its main office back to India from the US. The company is making important changes to follow Indian rules, like becoming a public limited company.
Although Razorpay does not plan to go public (list on the stock market) right away, it has already completed essential steps like getting approval to merge its US and Indian parts into one company in India.
Razorpay is one of the few successful fintech startups that is making a profit. In the financial year 2024, it earned Rs 2,068 crore in revenue and made a profit of Rs 35 crore. The company has not yet shared its results for the next year (FY25).
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