Indian fintech leader Razorpay has taken a majority stake in consumer‑payments startup Pop, injecting $30 million to strengthen its B2C credentials and scale Pop’s unique rewards-powered UPI platform
What’s the Deal?
- Razorpay, via its venture arm Razorpay Ventures, will lead the deal, marking a strategic expansion into consumer-facing payments.
- The investment directly addresses rising merchant customer-acquisition costs and boosts consumer rewards—Pop’s key differentiator
- While earlier talks valued Pop at $50 million, the final deal focuses on securing majority control with a $30 million infusion .
Why Pop Matters
Pop—a Bengaluru-based payments and rewards platform—operates on UPI and offers a RuPay credit card in partnership with Yes Bank. Users earn Pop Coins in every transaction, redeemable for discounts with partner brands
This model helps:
- Drive customer retention by guaranteeing rewards.
- Support merchants facing high acquisition costs.
- Position Razorpay much more strongly in the consumer rewards and UPI space.
Strategic Impacts for Razorpay
- B2C Expansion – Pop propels Razorpay beyond business merchants and into consumer payments.
- Stronger UPI Presence – The deal boosts Razorpay’s share in the highly competitive UPI ecosystem.
- Cross-Selling Potential – Razorpay could bundle Pop’s rewards platform with its existing merchant services for synergy.
- Venture Debut – One of the first bold moves by Razorpay Ventures, aiming to support emerging fintech startups
Market & Valuation Context
- Earlier in 2025, Pop had considered raising $10–15 million under a $50 million valuation; existing investors like Incubate Fund and Unilever Ventures had contributed $4 million
- Pop processed 8.1 million UPI transactions (~₹430 crore) in Jan 2025, reflecting strong traction
What Comes Next?
- Integration plans: How deeply will Pop integrate with Razorpay’s platform?
- Product evolution: Will Pop Coins be integrated across Razorpay’s merchant network?
- Revenue growth: Boosting user acquisition and engagement could accelerate Pop’s monetization path.
Final Take
By acquiring a majority stake in Pop with a $30 million investment, Razorpay is making a decisive move into consumer payments and rewards. The deal enhances its UPI strategy, diversifies service offerings, and signals Razorpay’s ambitions beyond merchant transactions.
Keep an eye on how Razorpay integrates Pop’s rewards model and amplifies its consumer reach in the months ahead.
