PhonePe Pvt Ltd, a leading digital payments firm in India, backed by global retail giant Walmart Inc, has unveiled its latest offering, an app called Pincode, on the Indian government’s Open Network for Digital Commerce (ONDC) platform.
The ONDC, launched in the previous year, is an initiative aimed at enabling small merchants and local stores across India to access the technologies and processes that are typically utilized by large e-commerce platforms such as Amazon and Walmart.
Pincode, currently available only in Bengaluru, one of India’s major cities, can be downloaded from both the Google Play Store and the App Store, as confirmed in a statement from PhonePe. The app is designed to focus on hyperlocal commerce, with a wide range of categories including groceries, food, pharma, electronics, home decor, and fashion, among others.
PhonePe has set ambitious goals for Pincode, with Chief Executive Sameer Nigam stating that the company aims to process 100,000 orders per day on the app by December. However, the rollout of the service will be cautious, with plans to initially launch in no more than 10 cities during the first year of operation, as stated by Nigam. This approach allows PhonePe to carefully evaluate and refine its operations before expanding further.
It’s worth mentioning that PhonePe already has an e-commerce platform called Switch, which offers a wide range of services such as food delivery, grocery shopping, travel booking, hotel reservations, retail fashion, and healthcare, all integrated within its app.
PhonePe’s partnership with Walmart has been significant in its growth journey. In March, the company raised $200 million in funding from Walmart at a pre-money valuation of $12 billion, making it India’s most valuable payments firm.
The introduction of Pincode on the ONDC platform further solidifies PhonePe’s commitment to leveraging the vast potential of the Indian e-commerce market and its ambition to empower local merchants and provide seamless digital commerce experiences to Indian consumers.
With Pincode, PhonePe aims to tap into the hyperlocal commerce segment, which has been gaining traction in India, especially with the rise of online shopping during the Covid-19 pandemic. By leveraging the ONDC platform, PhonePe seeks to bridge the gap between small merchants and consumers, providing a user-friendly and efficient platform for local commerce.
The company’s vision is to contribute to the growth of the Indian economy by empowering small merchants and local stores, while also providing a convenient and reliable shopping experience for consumers.
PhonePe’s foray into hyperlocal commerce through Pincode comes at a time when the e-commerce landscape in India is highly competitive, with players like Amazon, Flipkart, and others vying for market share.
However, PhonePe’s strong backing from Walmart, its existing user base from its digital payments business, and its commitment to innovation and customer-centricity position it as a formidable player in the space.
PhonePe Pvt Ltd’s launch of the Pincode app on the Indian government’s ONDC platform represents a significant step towards strengthening its e-commerce business and expanding its presence in the Indian market.
With its focus on hyperlocal commerce, ambitious goals, and support from Walmart, PhonePe is well-positioned to make a meaningful impact in the Indian e-commerce landscape, empowering local merchants and providing a seamless digital commerce experience for Indian consumers. The success of Pincode will be closely watched by industry observers, as it is expected to contribute to the rapidly evolving landscape of digital commerce in India.
