Bengaluru-based startup, POP, has raised $2.4 million in seed funding round led by India Quotient and other angel investors. The startup also announced that it had received approval as a Third-Party Application Provider (TPAP) from the National Payments Corporation of India (NPCI) to offer UPI payments via its POPclub app.
The company stated that in partnership with financial firms such as Yes Bank and Juspay, it has built its UPI stack. The funding will help expedite the implementation of various initiatives, including the POP UPI service that will enable users to earn POPcoins, a shopping currency already used by over 200 online merchants, with every UPI transaction made through the POPclub app.
These POPcoins can be used to buy a wide range of products from all major direct-to-consumer (D2C) brands in categories such as beauty, personal care, electronics, fashion, and home goods- all housed within the POPclub app.
Bhargav Errangi, Founder of POP, said, “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.”
POP also emphasises a 2 per cent value back through POPcoins for every UPI transaction, offering more predictable and consistent rewards compared to other UPI apps, according to the company.
“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,” he added.
Madhukar, General Partner at India Quotient, said, “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 added over 200 brands to its network. POPcoins have engaged over four million customers within the network, and as per the company this number is expected to grow to over 500 brands and 10 million customers by the end of the year.
(Inputs from bl intern Vidushi Nautiyal)