SUMMARY
PhonePe-owned Pincode has debuted in 10 cities across India such as Mumbai, Delhi, Noida, Gurugram, Chennai and Hyderabad
The platform aims to expand its category offerings and launch operations in many more cities in next few months, said Pincode general manager
PhonePe’s spree of launches comes close on the heels of the fintech juggernaut raising $850 Mn in capital in the last months
Pincode, an ONDC-native local shopping app created by phonepe
, has launched its operations in 10 Indian cities, including Mumbai, Delhi, Noida, Gurugram, Chennai, Hyderabad, Ahmedabad, Pune, and Kolkata.
With the debut of Pincode in these locations, customers will soon be able to use the app to buy a variety of things and make meal orders from their favorite local retailers and restaurants. This expansion is part of PhonePe’s strategy to ramp up presence on the state-backed network and to offer convenient and efficient shopping experiences to users.
“We are thrilled to share that Pincode is now live in 10 cities across India. The initial response and rapid consumer adoption of Pincode has given us the confidence to expand our services,” said Pincode general manager Lalit Singh.
In a statement, the platform said it plans to grow beyond its present concentration in segments such as grocery and food, pharmacy, apparel, and technology. Pincode aims to expand its category offerings and scale presence nationwide to build a larger ecosystem for consumers.
Singh also added that the platform is targeting foraying into more cities across the country in the coming months.
Pincode first debuted its app in Bengaluru in April 2023. The PhonePe-owned platform distinguishes itself by collaborating with well-known local stores and retailers in each location where it operates. The platform claims to have so far executed 1 Lakh deliveries on its network.
In May, Pincode said it notched up 50,000 downloads in Bengaluru and was said to be processing more than 5,000 orders a day. A quick check of the Google Play Store data reveals that the app has already garnered more than 1 Lakh downloads so far.
PhonePe’s Spree Of Launches
At a time when Indian startups are reeling under the impact of a funding drought, PhonePe has been announcing new launches and offerings.
Last month, the fintech decacorn launched account aggregator services, and followed it up by launching its own payment gateway.
In June, it also announced the roll out of its merchant lending marketplace and also launched UPI Lite for low-value payments in May to take on rival Paytm. The push for Pincode is likely part of PhonePe’s strategy to diversify its offerings and build a healthy pipeline of products ahead of its much-awaited public listing.
The spree of launches have been powered by PhonePe raising $850 Mn in capital in the last months after completing separation from ecommerce giant Flipkart.
As ONDC sees rapid adoption, the strategic expansion could be part of PhonePe’s strategy to get the first-mover advantage on the ONDC platform and capitalise on the growth of the emerging network.
To put things in perspective, ONDC offered its service in 230 cities at the end of May compared to 85 in January this year. The platform also played host to 35,000 merchants in May as against 800 in the first month of 2023.
It remains to be seen if the ONDC-based hyperlocal pitch works for PhonePe or if the fintech juggernaut spirals into a loss-making loop just like its sister concern Flipkart in the ecommerce sector.
