PhonePe has announced a major strategic shift for its quick-commerce venture, Pincode, marking a decisive exit from the B2C segment. The company has officially shut down Pincode’s consumer-facing shopping app and will now focus entirely on building and scaling B2B business solutions for India’s offline retail ecosystem.
This move signals a sharp realignment of PhonePe’s commerce strategy as it aims to empower kiranas, small merchants, and local retailers with digital tools that streamline their backend operations.
Why Pincode Is Leaving B2C Quick Commerce Behind
Pincode was originally launched in 2023 on the ONDC platform as a hyperlocal shopping app that allowed consumers to purchase directly from retail stores in their neighborhoods. Over the next year, PhonePe invested close to INR 90 Cr into the subsidiary, aiming to build a competitive consumer marketplace.
However, the B2C quick commerce space became increasingly crowded, dominated by heavyweights like Zepto, Blinkit, and Swiggy Instamart. Instead of burning cash to compete on rapid delivery, discounts, and logistics, PhonePe chose a more sustainable and strategic route—pivoting Pincode to a full-stack B2B solutions provider.
Pincode’s New B2B Direction
According to Pincode CEO Vivek Lohcheb, the company already provides a robust suite of digital solutions to offline merchants. These include:
- Inventory management tools
- Order management systems
- B2B sourcing and replenishment solutions for specific product categories
- Backend systems that help retailers digitize operations, reduce stockouts, and streamline supply pipelines
By shutting down the B2C app, PhonePe will now redirect all of Pincode’s existing resources—including tech, product, and operations—toward scaling these merchant-focused services.
A Shift Away From ONDC
When it was first launched, Pincode operated entirely on the ONDC network as a consumer shopping app that connected customers to local stores. But as PhonePe refined its long-term vision, the company decided to pull Pincode off the ONDC ecosystem to build its own internal marketplace infrastructure.
This gave PhonePe greater control over technology, supply chains, merchant experience, and service quality—key components in developing a scalable B2B offering.
Quick Commerce Experiments in 2024
In 2024, Pincode also experimented with 10–20 minute delivery services, piloting operations across major cities such as:
- Bengaluru
- Delhi NCR
- Mumbai
- Pune
- Hyderabad
- Varanasi
This trial helped Pincode develop deep expertise in logistics, merchant onboarding, and category management—experience that will now be repurposed for its B2B pivot.
What This Means for PhonePe’s Long-Term Strategy
PhonePe’s shift with Pincode showcases a clear trend:
The future of Indian commerce lies in digitizing offline retail—not competing in the cash-intensive B2C race.
By shifting focus from the consumer side to backend merchant solutions, PhonePe is positioning Pincode as an enabler of India’s massive unorganized retail market. The goal is to integrate millions of local shops into a digitally managed supply chain, creating efficiency and scale.
With the B2C app discontinued, Pincode will now evolve as a merchant-first platform, building tools that support small retailers and strengthen PhonePe’s broader commerce ecosystem
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