Walmart-backed PhonePe winds down its Pincode app in yet another e-commerce step back

In a significant strategic shift, PhonePe, the fintech entity backed by Walmart, has decided to close its Pincode e-commerce application, redirecting its efforts towards B2B services aimed at offline merchants. Sameer Nigam, the founder and CEO of PhonePe, explained that running a consumer-facing quick-commerce app had diverted attention from the company’s main goal of supporting small retailers. The Pincode app, launched in April 2023, was part of PhonePe’s ambitious entry into the e-commerce sector, built on the Indian government-endorsed Open Network for Digital Commerce (ONDC). The app aimed to provide a range of products—from groceries to electronics—sourced from local shops. Initially introduced in Bengaluru, it later expanded to more cities. However, just over a year after its launch, Pincode withdrew from multiple categories, retaining only food offerings. Earlier this year, the service transitioned to a quick-commerce format, promising deliveries within 10 minutes from local kirana stores in major cities like Bengaluru, New Delhi, and Mumbai. This approach differentiated it from competitors like Swiggy and Zomato’s Blinkit, which utilize dark stores for fulfillment. Despite these efforts, Pincode struggled to make a mark in the competitive landscape, leading to the decision to shut it down. This was not PhonePe's first venture into e-commerce; in 2019, it introduced the “Switch,” a super-app feature within its payments platform that allowed users to access various services including food and shopping. With the discontinuation of the Pincode app, PhonePe is now focusing on enhancing its B2B offerings. The company has already digitized over 1,000 local retailers across several Indian cities, providing them with tools for digital storefronts and inventory management. Vivek Lohcheb, the CEO of Pincode, confirmed that the team’s resources will be redirected towards developing B2B business solutions for offline enterprises throughout India. As PhonePe prepares for a public listing, expected in mid-2026, the company is looking to expand its role beyond being a leading payments app on the Unified Payments Interface. Although PhonePe declined to comment on the specifics of Pincode’s performance and the shutdown timeline, this shift marks a pivotal moment in the company’s strategic approach to the Indian market.