Key Points of PhonePe Pincode App for E-commerce Consumers:
- PhonePe, a digital payments giant in India, has launched a hyperlocal commerce app called Pincode on the ONDC platform, starting with grocery and food deliveries in Bangalore.
- The company plans to expand to other cities and categories, with a goal of launching in 10-15 cities by the end of the year.
- India’s e-retail market is projected to triple from $50 billion in 2022 to $150 billion by 2027, with a potential shopper base of 400-450 million by 2027, primarily from tier 2 and 3 cities.
- PhonePe aims to enable the entire local ecosystem, including local retailers, MSMEs, and farmers, with its hyperlocal quick commerce alternative that is inclusive.
- PhonePe is not competing with Flipkart or Amazon and is trying to create a complementary platform that facilitates hyperlocal transactions.
- PhonePe is currently in the middle of a $1 billion fundraise, with an additional $200 million raised in primary capital from Walmart, to grow its ONDC-based shopping and account aggregators.
- The company’s expenses stood at Rs 3,706 crore, with revenue from operations surging 2.4x to Rs 1,646 crore, according to MCA filings. PhonePe reported a contribution of Rs 13 crore from new segments like mutual funds and insurance, and plans to explore an IPO in 2025.
Details of PhonePe Pincode App for E-commerce Consumers:
PhonePe, the digital payments giant, has entered India’s e-retail market with its hyperlocal commerce app, Pincode. The app has gone live on the Open Network for Digital Commerce (ONDC) platform in Bangalore, starting with grocery and food deliveries in 150 pin codes. Other cities and categories will be added soon, with the goal of launching in 10-15 cities by year-end. PhonePe, which claims to have one out of four Indians on its platform, has over 35 million merchants accepting payments via its platform, with most of them operating in tier-2 cities and beyond.
The company has a huge investment plan to grow its hyperlocal commerce app, including UPI-level investments in Pincode, as the market opportunity is significant. The company is currently in the middle of a $1 billion fundraise, with an additional $200 million raised in primary capital from Walmart. The company plans to use part of the funds to grow its ONDC-based shopping and account aggregators.
According to a Bain report, India’s e-retail market is projected to triple from $50 billion in 2022 to $150 billion by 2027, with a potential shopper base of 400-450 million by 2027, led by new online shoppers primarily from tier 2 and 3 cities. With Pincode, PhonePe aims to enable the entire local ecosystem, including local retailers, MSMEs, and farmers.
PhonePe CEO and Founder, Sameer Nigam, stated that with ONDC, the company is not facilitating pan-India transactions and is not competing with Flipkart or Amazon. Nigam added that PhonePe is trying to create a hyperlocal quick commerce alternative that is inclusive.
Nigam believes that Pincode will have a positive contribution margin from day one and that ONDC won’t be a drag on the company’s margins. The company’s core business grew in triple digits for the fourth straight year, and Nigam expects this growth trajectory to continue this year, with profitability in the core business expected in 2023.
The company’s expenses stood at Rs 3,706 crore, with revenue from operations surging 2.4x to Rs 1,646 crore, according to MCA filings. PhonePe reported a contribution of Rs 13 crore from new segments like mutual funds and insurance. After new businesses settle down, the company plans to explore an IPO in 2025, with the first step towards getting listed in India already taken through a domicile shift.
About PhonePe:
In December 2015, Sameer Nigam, Rahul Chari, and Burzin Engineer founded PhonePe, an Indian company that provides digital payment and financial services. The company is headquartered in Bengaluru, Karnataka, India, and launched its app based on the Unified Payments Interface in August 2016.
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