Razorpay invests $30 million into consumer payments startup Pop

Pop, a client cost platform, has raised $30 million from funds options firm Razorpay. This funding will go in direction of fixing two of India’s most urgent challenges in digital commerce: rising buyer acquisition prices (CAC) for retailers and the dearth of significant rewards for shoppers, the corporate mentioned.

The corporate operates a rewards-first UPI funds app that merges funds, commerce, and credit score into one expertise. It has beforehand raised funding from a number of marquee buyers, together with India Quotient, Unilever Ventures, Incubate Fund, and Nuventures.

ET had reported in February that Pop was seeking to increase funds from Razorpay.

“India would not want one other cashback-only rewards app. What we’d like is a brand new rewards financial system constructed on a long-term goal. Popcoins are designed to construct habits, improve retention, and scale back CAC for retailers — all whereas making funds extra rewarding for the top person,” mentioned Bhargav Errangi, Founding father of Pop. “With Razorpay’s assist, we’ll double down on our mission to carry a loyalty-first funds ecosystem that can assist companies scale with goal, velocity, and impression.”

Pop will use the funding to strengthen product innovation, improve the worth proposition for shoppers through Popcoins-led rewards, and construct deeper service provider partnerships throughout D2C and way of life classes.

Since launching its UPI platform final June, Pop has scaled to over six lakh day by day UPI transactions, crossed a million distinctive month-to-month energetic transactors, fulfilled two lakh month-to-month commerce shipments and issued 40,000 RuPay bank cards in a co-branded partnership with Yes Bank.

The funding expands Razorpay’s footprint past funds into the broader ecosystem of loyalty, engagement, and commerce enablement. The corporate believes that whereas checkout journeys have been digitized, most retailers nonetheless lack easy-to-use instruments that incentivize repeat purchases, drive real-time engagement, and convert informal guests into loyal clients. Pop solves this by constructing a multi-brand rewards forex within the type of Pop Cash, within the firm’s view.“Our funding in Pop is pushed by a transparent goal and that’s to serve D2C retailers higher. In in the present day’s crowded D2C area, manufacturers want extra than simply cost options; they want instruments to earn belief, drive repeat purchases, and construct actual loyalty,” mentioned Harshil Mathur, co-founder and CEO of Razorpay. “Pop bridges that hole by combining prompt rewards, seamless funds, and model discovery in a single platform. It’s a strong method for companies to show on a regular basis transactions into lasting buyer relationships.”

This funding in Pop enhances Razorpay’s earlier acquisition of PoshVine, a loyalty and rewards administration platform, which laid the inspiration for Razorpay Interact, touted as India’s “first full-stack clever advertising and marketing progress suite”.

In accordance with a current Shopper Spending Report by Upside, over 90% of digital shoppers contemplate rewards and loyalty whereas making buy selections. With India’s D2C market anticipated to surpass $100 billion by 2026, the stress on manufacturers to create sticky, rewarding buyer experiences has by no means been higher.