Fintech unicorn Razorpay, headquartered in Bengaluru, Karnataka, has entered India’s competitive consumer UPI market with a $30 million investment in payments startup POP. This strategic investment will bolster POP’s product capabilities, reward ecosystem, and partnerships with direct-to-consumer (D2C) brands, as Razorpay eyes deeper involvement in the growing UPI space.
Bengaluru-based fintech unicorn Razorpay has made a strategic entry into the consumer Unified Payments Interface (UPI) sector by investing $30 million in POP, a fast-growing UPI platform known for its rewards-driven model. The investment aims to deepen Razorpay’s footprint in the competitive consumer payments space and support POP’s scaling efforts.
POP, launched in June 2024, is headquartered in India and operates a mobile-based UPI application that combines payments, commerce, and credit. It enables users to earn “POPcoins”—a multi-brand, brand-funded rewards currency—for every transaction, which can be redeemed for discounts across its expanding merchant network.
According to the National Payments Corporation of India (NPCI), POP ranked as the 21st largest UPI player in May 2025, processing 13.6 million transactions valued at over ₹500 crore. The platform has crossed 600,000 daily UPI transactions and recorded more than 1 million unique monthly active users within its first year.
The fresh funds will be utilized to enhance POP’s product suite, expand its partnerships in the direct-to-consumer and lifestyle segments, and grow its POPcoins-based loyalty ecosystem.
“POP bridges a critical gap by combining instant rewards, seamless payments, and brand discovery in a single platform,” said Razorpay Co-founder and CEO Harshil Mathur, adding that the investment aligns with Razorpay’s strategy to support D2C merchants in driving customer retention.
In a media statement, POP Founder Bhargav Errangi commented, “India doesn’t need another cashback-only app. With Razorpay’s support, we aim to build a loyalty-first payments ecosystem that helps businesses scale with purpose and impact.”
The startup also reported delivering over 200,000 monthly commerce shipments and issuing 40,000+ RuPay credit cards in partnership with Yes Bank, marking a broad financial services footprint.
This investment builds on Razorpay’s earlier acquisition of loyalty and rewards firm PoshVine and aligns with the launch of Razorpay Engage, its rewards and engagement arm.
India’s UPI market, dominated by PhonePe and Google Pay, continues to draw new entrants such as fintech firm Jar, which recently became a Third-Party Application Provider (TPAP) by collaborating with BharatPe and Unity Small Finance Bank.
Meanwhile, the debate around the Merchant Discount Rate (MDR) continues, with the Union Ministry of Finance recently denying any plans to levy MDR on high-value UPI transactions, keeping the Zero MDR policy intact for now.
As India’s UPI transactions surge past Visa’s global averages, Razorpay’s backing of POP underscores a shift toward innovation-driven loyalty and payment solutions that go beyond traditional cashback models.
