Bengaluru-Based Startup POP Secures $2.4 Million Seed Funding and TPAP Approval for UPI Payments
- ByStartupStory | June 19, 2024
POP, an innovative startup headquartered in Bengaluru, has successfully closed a $2.4 million seed funding round led by India Quotient, alongside several prominent angel investors. This capital injection is set to accelerate the company’s various initiatives, including the rollout of its new UPI payment service via the POPclub app.
In a significant development, POP has received approval as a Third-Party Application Provider (TPAP) from the National Payments Corporation of India (NPCI), allowing the startup to offer UPI payments through its app. In collaboration with financial entities like Yes Bank and Juspay, POP has built a robust UPI stack aimed at revolutionizing the payment experience for its users.
The new funding will expedite the implementation of POP’s innovative POP UPI service, which is designed to reward users with POPcoins for every UPI transaction. These POPcoins, a unique shopping currency, are currently accepted by over 200 online merchants and can be used to purchase a wide array of products ranging from beauty and personal care to electronics, fashion, and home goods, all available within the POPclub app.
Bhargav Errangi, Founder of POP, stated, “POP’s goal is to become the most sought-after go-to platform for payments and shopping for digitally active young Indians. As consumer behaviours evolve, we aim to provide innovative app experiences tailored to their interests in daily consumption.”
Differentiating itself from other UPI service providers, POP offers a 2% value back in the form of POPcoins for every UPI transaction. Errangi elaborated, “POPcoins-led rewards offer a predictable and consistent reward promise compared to the luck-based and gamified models of other UPI apps. These POPcoins can be effectively used to purchase over 100,000 SKUs our target audience consumes. Our ambition is to position POPcoins as the shopping currency for purchasing the new-age products/services that resonate with evolving new-age Indian consumer’s preferences.”
With this approval, POP joins the ranks of prominent UPI providers like Google Pay, PhonePe, WhatsApp, CRED, and Paytm. The POPclub UPI application, marketed as ‘Designed to reward,’ is now available with attractive launch offers on Google Play Store and Apple App Store.
Madhukar, General Partner at India Quotient, commented on the investment, saying, “Acquisition and retention are two most challenging problems for D2C and consumer brands. Very excited to partner with Bhargav and team to solve this very hard problem 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 expanded its network to include over 200 brands such as mCaffeine, HUL-owned Simple Skin Care, Adil Qadri, Anveshan, Two Brothers Organic Farms, and Epigamia. These brands have integrated POPcoins into their loyalty programs, engaging over four million customers. POP aims to grow this network to over 500 brands and 10 million customers by the end of the year.
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