Razorpay, a leading digital payments firm, has engaged in discussions to invest in Bengaluru-based payments and rewards startup Pop, according to two sources familiar with the matter. Backed by early-stage investor India Quotient, Pop aims to raise $10-15 million while considering an acquisition if it secures favourable terms.
Razorpay expects to invest in its recently launched venture arm, Razorpay Ventures. “Razorpay is keen on investing in Pop to establish a stronger presence in the business-to-consumer (B2C) market. Pop’s foothold in the Unified Payments Interface (UPI) segment is particularly appealing as Razorpay seeks to expand its direct-to-consumer offerings,” one source noted.
The sources added that the discussions have also explored the possibility of Razorpay acquiring a majority stake in Pop.
“Pop competes with the likes of heavily funded companies, including Cred. It’s among the many players on UPI, and scaling has been an issue for the startup,” another industry executive said.
According to sources familiar with the matter, Pop is also considering an acquisition that could value the company at $50 million, even as discussions continue for its ongoing funding round. Tracxn, a platform that tracks privately held startups, reports that Pop previously held a valuation of $15 million.
Founded by Bhargav Errangi, a former senior executive at Flipkart, Pop operates a payments platform built on the Unified Payments Interface (UPI) network. The startup also offers a RuPay-powered credit card in collaboration with Yes Bank.
Pop’s business model rewards users with Pop Coins when they make payments through its app. These Pop Coins can be redeemed for discount vouchers across various brands and e-commerce platforms.
In November last year, Razorpay launched its venture arm in partnership with venture funds Speak XV Partners and Lightspeed. It plans to support up to 50 startups through the program, investing approximately $1 million each.
“Razorpay is evaluating a few other companies under this programme, and if the Pop investment goes through, it could be one of the first for the payments firm,” said the second person.
According to sources familiar with the discussions, Japanese venture capital firm Incubate Fund and Unilever Ventures, the investment arm of consumer goods giant Hindustan Unilever, have already invested $4 million in Pop as part of the ongoing funding round. Previously, in June 2024, Pop secured $2.4 million from early-stage investor India Quotient and several angel investors.
During the fundraising announcement last year, Errangi said that Pop has an assured rewards model, unlike other UPI apps, which offer a gamified reward approach.
