A group of former Flipkart employees, led by Bhargav Errangi, is working to fix a big hurdle faced by D2C startups – acquiring new customers. Through their platform POP, the Bengaluru-based startup aims to build a vast pool of customers, who are preferably ecommerce savvy and drive sales through a reward currency. Conveniently called POPcoins, the reward currency is driven by the group’s learnings with Flipkart’s popular Supercoins.
We spoke to the company founder and CEO Errangi to learn how the platform works, what makes it different from the competition, and future roadmap. Here are the edited excerpts:
- How does the platform work? Please help simplify the process.
POP intends to create a network of e-commerce users which constitutes genZ and late millennials on the back of POPcoins. Brands participating in the POP network will get access to this network and can acquire and retain customers much more efficiently than the current modes of customer acquisition.
Moreover, we have a SaaS product that is already being used by 120+ D2C brands. It is a simple Shopify plug-in that can be integrated within the brand website, which enables the brand to issue POPcoins and let customers redeem POPcoins on their purchases.
Apart from that, POP will be launching a D2C e-marketplace which will house 500+ D2C brands and also its own UPI handle where users can earn 2% back in POPcoins on every transaction. Both these businesses will be launched within the same app platform, which is ready to be launched in May’24
- What makes your platform unique?
What sets us apart is the ability to merge two distinct worlds—bottom-up loyalty solutions and top-down co-branded credit cards. POP understands that to attract anchor brands to our network, we must offer a product that they genuinely value. The co-branded credit card approach not only differentiates us from competitors but also creates a symbiotic relationship between banks, anchor brands, and POP.
- How is it different from the likes of MagicPin? Also, please explain your fintech features.
Very different, POP is focused on the D2C market. The redemption options of POPcoins will be focused on D2C brands. Within the world of D2C, POP aims to incentivise customers who are avid shoppers of D2C brands. These are users who think beyond the mainstream brands and want to stand out of the crowd with their lifestyle choices. Whereas Magicpin is a discounted voucher platform where a user can buy vouchers of any brand- offline or online at discounted rates
We will have two fintech offerings- UPI and a co-branded credit card. On every UPI transaction, a user gets 2% value back on POPcoins. On every online transaction made on our credit card, the user earns 10% value back on POPcoins
- Please help us understand the regulatory compliances required for your fintech features, such as co-branded cards.
A ‘TPAP’ license is needed to become a UPI payments player, like PhonePe, Gpay, etc. We have obtained one recently. A partnership with a bank is required to launch a co-branded credit card. Our first partnership with a large bank will be rolling out soon.
- Are you planning to raise fresh funds in the near future?
We have already raised a seed round last year. We have enough funds in the bank for now, and we are focusing on the launches right now. Sometime later this year, we plan to raise our series A.
