The company is also considering an acquisition, with a potential deal valued at $50 million.
According to sources cited by Economic Times, Razorpay is exploring this 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,” a source stated.
POP, founded in 2023 by former Flipkart executive Bhargav Errangi, offers 2% POPcoin rewards on UPI transactions via its app. Its services include UPI payments, an integrated marketplace, and a credit card that enhances POPcoin earnings.
Approved as a third-party application provider (TPAP) by NPCI, POP enables UPI transactions through its platform, POP Club. The startup previously raised $2.4 million (around INR 20 crore) in seed funding from IndiaQuotient to develop its UPI-based rewards system. Since its inception, POP has raised over $5 million in total funding.
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