Payment aggregator Razorpay has invested $30 million in consumer payments platform POP for a majority stake.

POP, which was founded by former Flipkart employee Bhargav Errangi, will use the fresh capital to boost its product offerings, expand its merchant partnerships in the direct-to-consumer (D2C) and life categories and augment its consumer rewards through its POPcoins program, it said in a statement.

The Bengalurur-based startup said that POPcoins can be redeemed for discounts across a growing network of merchant partners.

POP, launched last year, operates a unified payments interface (UPI) app focused on rewards model. The startup claims to have scaled to over 6 lakh daily UPI transactions and reached more than 1 million unique monthly active users within its first year. It also said it has done more than 2 lakh monthly commerce shipments and issued more than 40,000 RuPay credit cards in partnership with Yes Bank.

“India doesn't need another cashback-only app. With Razorpay’s support, we aim to build a loyalty-first payments ecosystem that helps businesses scale with purpose and impact," said Errangi.

POP was not the only venture of Errangi. In 2015, Errangi had founded Spoyl, which was acquired by Flipkart.

Prior to this investment from Razorpay, POP had raised $2.4 million in its seed funding round led by venture capital firm India Quotient and angel investors last year.

For Razorpay, the investment in POP marks its entry into the consumer UPI space.

Razorpay has a strong history of acquisitions of startups before 2024. The fintech company has made at least eight acquisitions including digital invoicing and customer engagement platform BillMe, loyalty and engagement solutions provider PoshVine and offline payments player Ezetap.

Last month, Razorpay completed the reverse flip to India. Although the company has no immediate IPO plans, it's aiming for a public listing in about two-three years. Having raised about $800 million through several funding rounds, Razorpay was last valued at about $7 billion.

Interestingly in November last year, Razorpay had also partnered with venture capital firms PeakXV Partners and Lightspeed with an aim to invest in early-stage business-to-business (B2B) startups in India.