Sunday, July 14, 2024

POP Raises $2.4M Seed Funding to Launch UPI Play

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Bengaluru-based startup POP has successfully closed a $2.4 million seed funding round. The round was led by India Quotient and included contributions from several notable angel investors. This funding will enable POP to launch its UPI Play service through the POPclub app.

Approval and Partnerships

POP has received approval from the National Payments Corporation of India (NPCI) as a Third-Party Application Provider (TPAP) to offer UPI payments. The startup has partnered with financial firms like Yes Bank and Juspay to build its UPI stack.

Purpose of Fundraising

The newly raised funds will be used to expedite various initiatives, including the launch of POP UPI Play. This service will allow users to earn POPcoins, a shopping currency, with every UPI transaction made through the POPclub app. POPcoins can be used to purchase products from over 200 online merchants, covering categories such as beauty, personal care, electronics, fashion, and home goods.

Comments from Leadership

Bhargav Errangi, Founder of POP, stated, “Our goal is to become the go-to platform for payments and shopping for digitally active young Indians. As consumer behaviors evolve, we aim to provide innovative app experiences tailored to their interests in daily consumption.”

UPI services by NPCI.

POP differentiates itself from other UPI players by offering a 2% value back in POPcoins for every UPI transaction. Errangi emphasized that POPcoins provide a predictable and consistent reward compared to the luck-based models of other UPI apps. These POPcoins can be used to purchase over 100,000 SKUs, making them a versatile shopping currency for new-age Indian consumers.

Joining Prominent Players

With this approval, POP joins major players like Google Pay, PhonePe, WhatsApp, CRED, and Paytm in offering UPI payment services. The POPclub UPI application, marketed as ‘Designed to reward,’ is now available on Google Play Store and Apple App Store with attractive launch offers.

Investor Insights

Madhukar, General Partner at India Quotient, commented, “Acquisition and retention are two of the most challenging problems for D2C and consumer brands. We are very excited to partner with Bhargav and the team to solve these issues and enable thousands of consumer brands to acquire and retain customers at a fraction of current costs.”

Since its launch in early May 2023, POP has added over 200 brands to its network, including mCaffeine, HUL-owned Simple Skin Care, Adil Qadri, Anveshan, Two Brothers Organic Farms, and Epigamia. These brands have adopted POPcoins, replacing their traditional loyalty programs and points systems. POPcoins have engaged over four million customers, and this number is expected to grow to over 500 brands and 10 million customers by the end of the year.

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