The Razorpay digital payments company has invested $ 30 million (approximately RS 259 Crore) for a majority participation in the Pop Startup of payments aimed at the consumer. The size of the participation has not been disclosed.The startup based in Bengaluru, which focuses on UPI payments, had collected $ 12 million from incubate fund India and Unilever Ventures last October.
The investment offers Razorpay a support point in the consumer-internet sector as well as strengthening his game for the brands directed to the consumer (D2C).
Et reported for the first time on development on February 18th. At the time, people said that Pop were considering an evaluation of $ 50 million in the new round.
Pop did not reveal the evaluation in which the agreement was concluded. “In today’s crowded D2C space, brands need more than simple payment solutions; they need tools to earn trust, guide repeated purchases and build a real loyalty. Pop bridges in this gap,” said Harshil Mathur, CEO, Razorpay.
The investment in pop tracks the acquisition of Poshvine by Razorpay, a managing platform of loyalty and prizes. Razorpay Engage, a suite of intelligent marketing growth, was built above that platform.
In a declaration, Pop has declared that it will use the proceeds of the loan to strengthen its product platform, invest in prizes led by popcoins and accelerate mercantile partnerships in D2C and lifestyle categories.
Founded by the former Senior Manager of Flipkart Bhargav Errangi, a Poptech growth that manages pop, uses the UPI payments as the customer acquisition tool. The company also offers a credit card based by Yes Bank to customers.
While the startup wants to exploit payments to acquire new customers, it also competes with players strongly financed such as Cred, ships and super.money. Each of these players has invested in marketing and promotional campaigns to grow their UPI activities.
According to data from the National Payments Corporation of India, Pop has processed 13.5 million transactions in May which establishes RS 500 Crore. The company has declared to process over 600,000 daily UPI transactions and has gone through a million unique monthly active transators within the first year of operations.
“Popcoins are designed to build habits, increase loyalty and reduce the CAC (customer acquisition cost) for traders, all doing the most rewarding payments for the end user,” said Errangi.
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