In a bold shift from its traditional B2B focus, Indian fintech leader Razorpay has announced a $30 million investment in Bengaluru-based consumer payments startup Pop, signaling a strategic expansion into the direct-to-consumer (D2C) space. This move marks a major milestone for Razorpay, long recognized for powering payment solutions for over five million Indian businesses.
The deal, which gives Razorpay a majority stake in Pop, was led by its venture arm, Razorpay Ventures. While the exact equity split has not been disclosed, reports suggest the deal is valued at approximately ₹259 crore, with room for future consolidation or a full acquisition.
From B2B to B2C: A Strategic Pivot
Razorpay has historically dominated the B2B payments space with its widely used payment gateway, RazorpayX (neo-banking), and lending platforms. With the acquisition of Pop, the company is now looking to build a consumer-facing layer to its fintech ecosystem—enabling it to engage directly with millions of Indian UPI users.
Pop, previously backed by Razorpay Ventures, operates the POPclub platform, which rewards users for their UPI-based transactions. These rewards, branded as POPcoins, can be redeemed on a growing list of D2C brands. This gamified experience adds a value proposition to every payment, differentiating Pop in India’s crowded UPI market.
🚀 Why Pop?
Pop is one of the few UPI-native apps designed for the next generation of online spenders. Its focus on rewards and loyalty taps into a growing trend of merging payments with consumer engagement. Through this stake, Razorpay now gains:
- A foothold in India’s booming consumer UPI ecosystem, which has seen 13 billion+ monthly transactions in 2025.
- A platform to directly engage with retail users, something it lacked until now.
- A way to connect merchants and consumers under one ecosystem—creating potential for loyalty programs, cashback models, and personalized offers powered by Razorpay’s data capabilities.
Building a Holistic Fintech Stack
Razorpay’s strategic investment in Pop comes at a time when the company is preparing for an IPO by 2026–27 and scaling globally. It recently completed a reverse flip from the U.S. to India, strengthening its position in the domestic market.
This expansion adds a missing consumer piece to Razorpay’s otherwise enterprise-heavy stack. The company is already offering:
- RazorpayX: A neobanking platform for businesses.
- Razorpay Capital: Lending solutions for working capital.
- Payment Gateway Services: For startups and large enterprises.
- International Expansion: Operations in Southeast Asia, including UAE, Malaysia, and Singapore.
Now with Pop, Razorpay is positioned to create cross-platform synergies—such as integrating POPcoins into merchant payment pages or offering consumer discounts backed by merchant-side promotions.
Expert Insight
Fintech analysts believe this is more than just an investment—it’s a move to future-proof Razorpay’s business.
“Razorpay wants a business-to-consumer play. Pop’s presence in the UPI segment is what is attractive,” said a source familiar with the deal.
“With this, Razorpay can now touch both sides of a transaction—merchant and consumer.”
Final Thoughts
Razorpay’s $30M bet on Pop signals the rise of a consumer-first future in fintech, where payment platforms aren’t just utilities—they’re engagement ecosystems. With UPI at the heart of India’s digital economy, this move could help Razorpay capture a significant chunk of daily user interactions and strengthen its position before it goes public.
As Razorpay integrates Pop more deeply into its platform, Indian users could see enhanced rewards, smarter checkout experiences, and a more connected shopping journey—from the merchant to their mobile screen.
