POP In Talks With Razorpay To Raise Up To $15 Mn: Report

Ecommerce enablement startup POP is reportedly in talks with payments giant Razorpay to raise between $10-15 Mn (about INR 86.9-130.4 Cr). The company is also open to an acquisition if deal terms materialise.

As per ET, citing sources close to the matter, Razorpay will be leading the investment through its newly formed venture arm Razorpay Ventures.

“Razorpay is actively evaluating an investment in POP as it wants a business-to-consumer play. POP’s presence in the UPI segment is what is attractive for Razorpay as it looks to open itself up directly to consumers,” the report quoted a source as saying.

Inc42 has reached out to POP for comments on the development. The story will be updated based on the response.

Sources further said that there are also discussions on stake sale to Razorpay. Also, on acquisition plans, the company is navigating a deal valued at $50 Mn.

Founded in 2023 by former Flipkart executive Bhargav Errangi, POP claims to offer a reward of 2% POPcoins on every UPI transaction made by the customer on its app. The startup’s core features include UPI payments, an integrated marketplace, and a credit card that accelerates the earning of POPcoins. 

POPcoin is used to buy products from D2C brands in categories like beauty, personal care, electronics, fashion and home goods, available on the app.

The startup has been approved by the National Payments Corporation of India (NPCI) to operate as a third-party application provider (TPAP), enabling UPI payments through its app, POP Club.

Previously, the Bengaluru-based startup raised $2.4 Mn (around INR 20 Cr) in a seed funding round led by IndiaQuotient for implementation of its UPI services that enables consumers to earn POPcoin.

Cumulatively, the company has raised more than $5 Mn since its inception.