In India's fiercely competitive online retail market, Walmart-owned fintech giant PhonePe has scaled back its operations again—shutting down its e-commerce app Pincode and shifting focus to providing B2B (business-to-business) services for offline merchants.
On December 4 (Thursday), PhonePe founder and Group CEO Sameer Nigam stated that operating a consumer-facing quick-commerce app had diverted the company’s attention from its core business of serving small retailers. He emphasized that the company now aims to prioritize helping offline stores "improve operational efficiency, enhance profit margins, and increase visibility."
Launched in April 2023, Pincode marked PhonePe’s major foray into e-commerce. The app was built on India’s government-backed Open Network for Digital Commerce (ONDC) and focused on a "hyperlocal instant delivery" model, offering groceries, medicines, food, electronics, and home decor from neighborhood stores. Initially launched in Bengaluru, Pincode later expanded to other cities.
However, just over a year after its debut, Pincode gradually withdrew most categories except food. Earlier this year, the app pivoted to a quick-commerce model, promising 10-minute deliveries through local kirana shops and retailers in cities like Bengaluru, New Delhi, Mumbai, Hyderabad, and Pune. In April, PhonePe also expanded its "10-minute medicine delivery" service to Bengaluru, Mumbai, and Pune.
Unlike competitors such as Swiggy, Zomato-owned Blinkit, and Zepto—which rely on dark stores (warehouse-like facilities for online orders only)—Pincode leveraged local shops for rapid deliveries. However, this differentiation strategy failed to secure a strong foothold in the crowded market, ultimately leading PhonePe to discontinue the service.
Pincode was not PhonePe’s first e-commerce venture. In 2019, the company introduced "Switch," a super-app layer within its payment app, offering services like food delivery, groceries, shopping, and travel.
PhonePe has now shut down the Pincode app, redirecting its website to its main platform. The company stated it will focus on expanding B2B services for offline retailers. In July, PhonePe revealed that Pincode had digitized over 1,000 local stores across Bengaluru, Pune, Delhi NCR, Hyderabad, Mumbai, and Varanasi, providing them with digital storefronts, inventory management tools, and last-mile delivery solutions.
Pincode CEO Vivek Lohcheb said in a prepared statement: "As part of this strategic decision, we will now consolidate Pincode’s entire team to accelerate the development and rollout of a B2B commerce solution for offline businesses across India."
Currently, PhonePe offers inventory and order management tools, ERP software, and direct procurement services for small businesses.
This strategic shift comes as PhonePe prepares for an IPO in India—nearly three years after its spin-off from Flipkart. In September, the company confidentially filed draft papers with SEBI, targeting a mid-2026 listing. PhonePe is also exploring growth beyond its dominant position in India’s UPI payments space.
PhonePe has not disclosed specific details regarding Pincode’s performance or the exact timeline for its shutdown.
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