PhonePe has changed Pincode's business strategy from B2C to B2B for merchants. Pincode, a B2C software for local orders, was released on the Open Network for Digital Commerce in April of 2023.
Key Highlights
- PhonePe ends Pincode B2C operations to fully concentrate on expanding its B2B fintech services.
- The shift allows PhonePe to strengthen B2B offerings, targeting businesses with payments and digital solutions.
The company launched rapid commerce in November 2024, with pilots in Bengaluru, Delhi NCR, Mumbai, Pune, Hyderabad, and Varanasi. It expanded the service in the same cities in January 2025, with a launch scheduled for April to June 2025.
In a media release, PhonePe stated that running another B2C rapid commerce app was distracting it from its primary objective. Founder and CEO Sameer Nigam explained that the team realized the app was not going in the correct way and decided to discontinue development on the B2C strategy. He also stated that the focus will now be on supporting the store network via B2B solutions.
Pincode will focus on billing catalog systems, inventory management, and order processing solutions for merchants. PhonePe will also help merchants source and refill in specific categories.
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The company acknowledged that Pincode will solely be a B2B platform and will not have a consumer app. The goal is to create solutions that help retailers manage their operations and supply demands.
