Bengaluru-based startup POP has secured $2.4 million in seed funding, led by India Quotient and prominent angel investors, to revolutionize UPI transactions and enhance user rewards.

Game-Changer in UPI Transactions

In an exciting development for fintech enthusiasts, POP has received approval from the National Payments Corporation of India (NPCI) to operate as a Third-Party Application Provider (TPAP). With strategic partnerships with Yes Bank and Juspay, POP is poised to offer a groundbreaking UPI payment service via its POPclub app, rewarding users with POPcoins—a unique shopping currency—on every transaction.

Unveiling POPcoins: The Future of Rewards

POPcoins set a new standard in UPI rewards by offering a 2% cashback on every transaction, providing consistent and attractive benefits compared to other UPI apps. Users can redeem POPcoins to shop across a vast array of products from over 200 top direct-to-consumer (D2C) brands within the POPclub app, including beauty, personal care, electronics, fashion, and home goods.

Driving the Future of Digital Payments

Founder Bhargav Errangi envisions POP as the ultimate platform for payments and shopping tailored to digitally savvy young Indians. “Our mission is to deliver innovative app experiences that align with the evolving interests of our users,” Errangi remarked. By positioning POPcoins as the go-to shopping currency, POP aims to resonate with the modern preferences of Indian consumers.

Strategic Vision and Expansion

Madhukar, General Partner at India Quotient, highlighted the strategic importance of POP’s solution for D2C and consumer brands. “We’re excited to support Bhargav and the team in addressing the critical challenges of customer acquisition and retention, enabling brands to retain customers at a fraction of current costs,” he stated.

Since its launch in early May 2023, POP has successfully integrated over 200 brands and engaged more than four million customers through its POPcoins rewards system. The company’s ambitious goal is to expand its network to over 500 brands and attract 10 million customers by the end of the year, showcasing its rapid growth and market potential.

A New Era in UPI Payments and Rewards

With its innovative approach and robust support from investors, POP is set to redefine the landscape of UPI transactions, making digital payments more rewarding and enjoyable for users. Stay tuned as POP continues to revolutionize the fintech industry, offering unparalleled value and convenience to its growing user base.

What are your views in this UPI revolution?

Ahmedabad-based ice cream brand Hocco has successfully raised Rs 100 crore (approximately $12 million) in a new funding round. The investment, led by the Chona family and existing investor Sauce VC, has propelled Hocco’s valuation to an impressive Rs 600 crore. Prominent angel investors, including film producers Ritesh Sidhwani and Farhan Akhtar, also participated in this funding round.

Expansion Plans Fueled by New Capital

Ankit Chona, Hocco’s managing director, revealed that the funds will be used to expand the company’s manufacturing capacity. Despite being just eight months old, the brand is already projecting to achieve Rs 200 crore in revenue for the fiscal year ending March 2025.

Legacy and Growth Trajectory

The Chona family, known for selling their legacy brand Havmor to South Korean conglomerate Lotte for Rs 1,020 crore in 2017, is now focusing on Hocco’s rapid growth. Sauce VC, which has invested in notable new-age brands like Mokobara and The Whole Truth, now owns approximately 10% of Hocco.

“We started in October last year with high hopes, but the response exceeded our expectations. What we anticipated achieving in our second or third year, we’ve accomplished in the first year. Our current plant capacity is between 40,000-50,000 liters a day, far surpassing our initial projection of 15,000 liters by May. By next summer, we aim to triple this capacity to 1.3 lakh liters a day,” said Chona.

Competitive Landscape and Industry Insights

The Indian ice cream industry, valued at around $5 billion, has seen the emergence of several new-age brands like Noto, Get A Way, Go Zero, Frubon, and Minus 30. These brands are challenging established players such as Amul, Mother Dairy, Hindustan Unilever’s Kwality Walls, and Jaipuria group-owned Cream Bell. Investment firms like DSG Consumer Partners, Jungle Ventures, Saama Capital, and Fireside Ventures are backing these new players.

Manu Chandra, founder and managing partner of Sauce VC, commented, “The growth in the ice cream market reflects the increasing disposable incomes directed towards impulse and indulgence categories. Quick commerce channels connect digitally savvy consumers who seek instant gratification, a trend that wasn’t possible five years ago.”

Quick Commerce and Market Expansion

Chona emphasized the potential of quick commerce in expanding Hocco’s reach beyond Gujarat. “Currently, our revenue primarily comes from Gujarat and some quick commerce sales. We started quick commerce in February, and our sales through this channel have been doubling every month,” he said. Hocco plans to penetrate deeper into Gujarat and expand into Rajasthan, Maharashtra, and Delhi-NCR by next summer.

“Quick commerce is a significant disruptor for the ice cream industry. It satisfies the immediate demand with 10-minute deliveries. However, the challenge is that these platforms carry numerous brands, limiting the depth of SKUs. Nevertheless, it’s a huge opportunity,” Chona added.

What do you think about Hocco’s rapid growth and expansion plans? Do you believe quick commerce will revolutionize the ice cream industry? How do you see new-age brands competing with legacy players in the market? Share your thoughts and join the conversation in the comments below!

Direct-to-consumer (D2C) personal care brand 82°E, co-founded by Bollywood icon Deepika Padukone, is set to raise Rs 50 crore (approximately $6 million) in an extension of its seed round. This latest injection of capital marks the first round of investment for the company this year, fueling anticipation and excitement in the beauty and skincare industry.

Special Resolution Passed for New Investment

The board of 82°E has approved a special resolution to issue 50,00,000 Series Seed 2 CCPS at an issue price of Rs 100 each, according to regulatory filings from the Registrar of Companies (RoC). KA Enterprises LLP, an investment entity owned by Padukone and her family, is expected to participate, with other investors likely joining as well. The funds will be used for expansion, growth, and general corporate purposes.

Previous Funding and Ownership

This new funding round follows a successful seed round in December 2022, where 82°E raised $7.5 million from DSG Partner, IDEO Ventures, and Padukone’s family office. According to TheKredible, Padukone and her family office currently hold a 59.6% stake in the company, while actor Ranveer Singh owns 5.32%.

Rapid Growth and Financial Performance

Launched in 2022 by Deepika Padukone and Jigar Shah, 82°E offers a comprehensive range of skincare products for both men and women, including cleansers, face masks, moisturizers, and sunscreens. The brand has shown significant growth in a short period, with its revenue from operations reaching Rs 22.82 crore between March 2023 and December 2023. For comparison, the company’s operating income was Rs 11 crore in FY23. Despite its rapid revenue growth, the company reported an EBITDA loss of Rs 25.1 crore during the same period.

Competitive Landscape

82°E competes with established brands like Plum, mCaffeine, Wow Skin Science, and publicly listed Mamaearth. With its strong celebrity backing and innovative product range, 82°E is well-positioned to make a significant impact in the competitive D2C personal care market.