Bengaluru-based payments and rewards startup Pop is in advanced discussions with Razorpay for a potential investment, according to sources familiar with the matter. Backed by early-stage investor India Quotient, Pop is looking to raise $10-15 million and is open to an acquisition if terms are favourable.
Razorpay, through its recently launched venture arm, Razorpay Ventures, sees Pop as a strategic fit to strengthen its presence in the business-to-consumer (B2C) market. The startup’s growing foothold in the Unified Payments Interface (UPI) space is a key attraction as Razorpay expands its direct-to-consumer offerings. Discussions also include the possibility of Razorpay acquiring a majority stake in Pop, sources said.
Competing with well-funded players like Cred, Pop has faced challenges in scaling. The startup is exploring acquisition options that could value it at around $50 million, while Tracxn previously estimated its valuation at $15 million.
Founded by Bhargav Errangi, a former Flipkart executive, Pop operates on the UPI network and offers a RuPay-powered credit card in partnership with Yes Bank. The platform rewards users with Pop Coins, which can be redeemed for discount vouchers across various brands and e-commerce sites.
Razorpay launched its venture arm last year, partnering with Speak XV Partners and Lightspeed, aiming to invest in up to 50 startups with approximately $1 million each. If the Pop investment materializes, it could be among Razorpay’s first deals under this program.
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Japanese VC firm Incubate Fund and Unilever Ventures have already committed $4 million to Pop in the current funding round. In June 2024, the startup secured $2.4 million from India Quotient and angel investors.
Last year, Errangi highlighted Pop’s assured rewards model as a key differentiator from other UPI apps, which typically offer gamified incentives.
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