PhonePe enters the ONDC e-commerce market with the launch of the specialised hyper-local app 'Pincode.'

PhonePe enters the ONDC e-commerce market with the launch of the specialised hyper-local app 'Pincode.'

It will be a buyer-side application on the Open Network for Digital Commerce (ONDC), a government-backed project aimed at democratising Indian ecommerce.

PhonePe, a Walmart-owned fintech business, has entered the e-commerce market with the launch of a new consumer application called "Pincode." The Open Network for Digital Commerce (ONDC), a government-backed effort to democratize e-commerce in India, will host the buyer-side application.

"Because ONDC is such a vast ocean of promises, PhonePe is launching a new consumer app." We think that a category or a tab will not solve the issue for the consumer. "We need a new shopping app that puts the store at the centre of the interaction," Sameer Nigam, Co-founder and CEO of PhonePe, said on Tuesday at the app's launch event in Bengaluru.

Pincode will be a pure hyper-local ecommerce software that connects ONDC network sellers to consumers. The service is presently only available in Bangalore. The software can now be downloaded from the Google Play Store and the software Store.

"ONDC was established with the goal of enabling every physical retail business and service provider in the country to participate in the ongoing digital revolution, the e-commerce revolution." "We believe that the best way to realise this vision is to connect local neighbourhoods digitally in a way that both consumers and sellers find appealing, convenient, and affordable," he said.

Pincode, according to Nigam, will stay a pure-play hyper-local competitor on ONDC and will not venture into private labels, dark stores, or logistics.??

"All sellers will be listed democratically, and they will come through the seller platforms." We will ensure that a large amount of data is made accessible through the channel back to the stores. We are not here to determine the victor. We genuinely want a lot more options. Second, we will not discuss cost. "I believe that is central to the spirit of OIDC," he continued.

The Pincode app will support local shopkeepers and sellers while also digitally connecting each city's consumers with all of their neighbourhood stores where they currently shop. It is available in six categories: food, groceries, pharmaceuticals, fashion, technology, and home decor. By the end of the year, PhonePe hopes to have one lakh orders per day.

He claims that because buyer platforms do not influence seller pricing, buyer apps will have to distinguish on experience, search, and product. "It's not a capital play, and that's where we think we have a chance," he explained.