PhonePe, a key player in payments, is entering the e-commerce space with a distinct app called “Pincode” that will operate over the ONDC (open network for digital commerce) network. PhonePe is now finalising a $1 billion fundraising round from Walmart, General Atlantic, and others.
On Tuesday, the business introduced Pincode, a hyperlocal ecommerce network that facilitates online transactions between nearby residents and nearby brick-and-mortar retailers.
As it grows, it will use the same model throughout all cities, which means intercity deliveries won’t be made. Currently, Pincode operates in six sectors, including Electronics, Groceries, Food, Pharmacy, Home Furnishings and Fashion.
The Directorate for Promotion of Industry and Internal Trade (DPIIT) founded the Non-Profit Organisation ‘ONDC’, an open e-commerce network that facilitates local trade using network-enabled apps.
PhonePe, which now maintains the top spot on the Unified Payments Interface (UPI), has been one of the key firms impacted by the zero-merchant discount rate (MDR) regime.
PhonePe is currently expanding its business to include financial services including Insurance, Stock Brokerage and Investing. Around these business lines, it has submitted licence applications.
ONDC Metric
While the network is still in its infancy of operations with less than 1,000 transactions a day, Pincode’s product market fit will be key for ONDC as well, according to persons with knowledge of the figures who spoke to ET.
According to Thampy Koshy, CEO of ONDC, on March 31 alone, ONDC processed 803 transactions, of which 599 were retail-related.
Pincode will now be featured as one of the buyer apps on the ONDC network with Paytm, Mystore, Craftsvilla, Spice Money, and Meesho, in addition to five other buyer apps.
Customers may place orders using buyer applications in a variety of categories, including grocery, food and drink, clothing and accessories, electronics, and home design.
