PhonePe's Pincode ONDC-Based Shopping App to Promote Local Businesses and Hyperlocal E-commerce
PhonePe Aims to Digitally Enable Every Indian Shopkeeper with Pincode App
4 April 2023
Pincode, a new hyperlocal consumer app from PhonePe, is aimed at boosting nearby retailers and vendors.
The app hopes to have 1 lakh orders per day by December and provides a large assortment of items from various categories.
PhonePe intends to invest heavily in providing every Indian merchant with digital access and to grow the app city by city.
A new hyperlocal consumer app named "Pincode" has been released by PhonePe, a company that specializes in digital payments, and it is based on the Open Network for Digital Commerce (ONDC) platform. By linking customers digitally to all of their local shops, the app will put a special emphasis on supporting small business owners and vendors. Pincode is now only available to consumers in Bangalore and is now available for download on the Google Play Store and App Store. PhonePe hopes to have 1 lakh orders per day by December as it grows the app city by city.
To provide customers with a greater and larger assortment of items than rivals, Pincode provides six categories, including fashion, pharma, and food. These categories include well-known national brands and locally produced consumables, garments, footwear, and accessories. The software will boost local farmers, MSMEs, and merchants in addition to the broader local economy that powers commerce. During the next five years, PhonePe will make a substantial effort to digitally enable every Indian merchant located in every nook and cranny.
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The finance company is certain that ONDC can support the quick development of a new hyperlocal e-commerce business model that places all local retailers and vendors at the center of the success of online shopping. According to the business, additional ecosystem stakeholders, such as those involved in inventory control and last-mile logistics, stand to gain from such a strategy. PhonePe raised $100 million in primary capital from Ribbit Capital, Tiger Global, and TVS Capital Funds in February. The company intends to use this money to aggressively expand its existing businesses, including lending, stockbroking, ONDC-based shopping, and account aggregators, as well as to scale up its payments and insurance businesses in India.
The introduction of Pincode comes two weeks after PhonePe secured an additional $200 million in primary capital from Walmart at a pre-money valuation of $12 billion, and three months after PhonePe fully severed its ties with Flipkart. PhonePe stated last year that it will be moving its domicile to India and has thus far received $650 million from many international investors. Due in part to its dominance in the UPI industry, where it commands a market share of more than 50% in terms of value, the fintech company this month achieved an annual TPV (total payment value) run-rate of $1 trillion.