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PhonePe Ditches E-commerce for Merchant Services
5 Dec
Summary
- PhonePe shutters its Pincode quick-commerce app.
- The company pivots to B2B services for offline merchants.
- Pincode launched in April 2023 on India's ONDC network.
Walmart-backed PhonePe has announced the closure of its Pincode e-commerce application, marking a significant retreat from India's competitive online retail landscape. The company cited that operating a consumer-focused quick-commerce app had become a distraction from its core mission of supporting small retailers and achieving their operational efficiency and profitability.
Launched just over a year ago in April 2023, Pincode was initially built on the Indian government-backed Open Network for Digital Commerce (ONDC). It aimed to offer hyperlocal deliveries from neighborhood shops, eventually transitioning to a quick-commerce model with 10-minute delivery promises in major cities. However, this approach, relying on local stores rather than dark stores like its competitors, failed to gain substantial market traction.
PhonePe will now redirect its resources towards expanding its suite of B2B offerings for offline businesses across India. These services include inventory and order management tools, ERP software, and direct sourcing solutions, aiming to digitize local stores and provide them with digital storefronts and last-mile delivery capabilities.
