Exclusive: Razorpay Picks Up Majority Stake In POP With $30 Mn Infusion

UPI payments startup POP has secured $30 Mn (INR 258.2 Cr) from Razorpay.

With this, Razorpay has picked up a majority stake in the Bengaluru-based startup. The investment also marks Razorpay’s expansion beyond core payment infrastructure into loyalty, engagement and commerce-enablement categories.

POP, operated by Poptech Growth Pvt Ltd, did not disclose the financial terms of the deal.

“Razorpay will hold a majority stake (over 50%) in POP following the investment. However, POP will continue to operate as an independent entity,” a company spokesperson told Inc42.

POP plans to use the fresh capital to ramp up its product innovation, boost consumer value proposition through POPcoins-driven rewards and foster merchant partnerships, particularly in the D2C and lifestyle segments.

To date, the ecommerce enablement startup has raised over $5 Mn in total funding and counts IndiaQuotient, Unilever Ventures, Incubate Fund and Nuventures among its backers.

Earlier, it was reported that POP was in talks with Razorpay to raise between $10-15 Mn (about INR 86.9-130.4 Cr). The company was also open to an acquisition if the deal terms materialise.

POP runs a rewards-first UPI payments app that brings together payments, shopping and credit into one seamless, rewarding experience.

Launched in 2023 by ex-Flipkart executive Bhargav Errangi, the POP is on a mission to beat Paytm and claim the third major spot in the UPI ecosystem. At its core, POP offers UPI payments, an integrated marketplace, and a credit card that helps users rack up POPcoins faster.

Much like CRED Coins, POPcoins are earned on every UPI transaction and can be redeemed for products from leading D2C brands across beauty, electronics, fashion and home, making everyday payments more rewarding than ever.

“POPcoins are designed to build habits, increase retention, and reduce CAC for merchants – all while making payments more rewarding for the end user. With Razorpay’s support, we will double down on our mission to bring a loyalty-first payments ecosystem that will help businesses scale with purpose, speed, and impact,” said Bhargav Errangi, founder of POP. 

Since launch, POP claims to have scaled to over 6 Lakh daily UPI transactions, 1 Mn monthly active transactors, 2 Lakh monthly commerce shipments and 40,000 RuPay credit cards issued in partnership with Yes Bank.

What Does It Mean For Razorpay?

POP said that the investment will allow Razorpay to extend its footprint beyond core payments into the broader ecosystem of loyalty, engagement and commerce enablement.

By backing POP, Razorpay aims to offer D2C merchants more than just transaction infrastructure, it is looking to provide tools that foster customer trust, boost repeat purchases, and build long-term brand loyalty.

This move also complements Razorpay’s earlier acquisition of PoshVine, a loyalty and rewards management platform, which laid the foundation for Razorpay Engage, a full-stack intelligent marketing growth suite.

Harshil Mathur, cofounder and CEO of Razorpay, said, “Our investment in POP is driven by a clear purpose and that is to serve D2C merchants better. In today’s crowded D2C space, brands need more than just payment solutions, they need tools to earn trust, drive repeat purchases, and build real loyalty. POP bridges that gap by combining instant rewards, seamless payments, and brand discovery in one platform.”

Razorpay has long been known as a leader in digital payments and fintech infrastructure. With investments like POP and the earlier PoshVine acquisition, it clearly suggests that now Razorpay no longer wants to be seen as just a payments company but as a full-stack commerce platform that helps merchants acquire, retain, and grow customers.

This development comes amid rising customer acquisition costs for brands and growing demand for value-driven shopping experiences. 

According to a report by Upside, over 90% of digital consumers in India consider loyalty and rewards as a key factor in their purchase decisions.