SUMMARY
The app is downloadable from Google Play and App store
At present, Pincode is only available in Bengaluru city and will soon be launched in other cities
The development comes a few days after PhonePe’s ZestMoney acquisition deal fell through
Fintech giant PhonePe has today launched a consumer-centric shopping app Pincode, which is built on the Centre’s Open Network for Digital Commerce (ONDC) platform. The move is suggestive of PhonePe’s plan to strengthen its hold in India’s ecommerce space.
The app, which will focus on hyperlocal commerce, is downloadable from Google Play and App store. At present, it is only available in Bengaluru city and will soon be launched in other cities.
The development comes a few days after PhonePe’s ZestMoney acquisition deal fell through owing to lack of due diligence, disagreements over valuation, sustainability and shareholding structure of the latter.
PhonePe’s Pincode app will connect consumers with their neighborhood stores and looks to offer the convenience of online ordering, discounts, instant refunds and returns.
The neighborhood stores, registered on the app, will sell products both from recognised brands and locally manufactured groceries, apparel, footwear and accessories.
As per PhonePe, the app will not only boost the local retailers, but also the entire local ecosystem including MSMEs and farmers.
“We are very excited to launch Pincode. Pincode is a brand-new shopping app and offers a revolutionary new approach to e-commerce, which puts all the local stores and sellers at the heart of the digital shopping growth story. Pincode is built on the ONDC network, which allows us to generate demand for merchants digitized by various seller platforms in an inclusive manner, while creating new opportunities for growth and driving innovation at scale,’’ said Sameer Nigam, CEO and founder PhonePe.
Further, Pincode plans to digitally enable every Indian shopkeeper over the next few years. And, the app also looks to attract small merchants to the ecosystem and aims to create sustainable employment opportunities.
Looking at the bouquet of services that PhonePe off PhonePe is following the footsteps of listed fintech giant Paytm. Like Paytm, PhonePe is offering a slew of services including hotel and travel booking, food and grocery delivery, online pharmacy, metro booking and other essential services, to customers.
Besides this, PhonePe is also operating in the ecommerce segment via its app ‘Switch’.
So far, the fintech giant has raised $650 Mn out of the $1 Bn that it pledged to raise by the end of the ongoing year (2023). It secured the said investment from global investors including Ribbit Capital and General Atlantic.
In February 2023, PhonePe processed 351.9 Cr UPI transactions amounting to INR 6.2 Lakh Cr ( 50.18% of the total UPI transaction value of all transactions) in the country.
In 2022, it shifted its domicile from Singapore to India to file an IPO in the latter country. However, the move resulted in PhonePe to pay INR 8000 Cr to the Indian government.
