PhonePe sharpens quick commerce play in first for a payments company

Walmart-backed PhonePe has become the first payments firm to delve into the rapidly growing quick commerce market. The company views rapid delivery as a significant area of expansion over the next two years, ahead of its planned public listing in 2026, according to sources. This marks PhonePe's third attempt to enter the online retail space.

After exiting the government-backed Open Network for Digital Commerce (ONDC) last year, PhonePe's e-commerce venture, Pincode, has fully transitioned to a quick commerce model and is now offering 15-minute deliveries in 10-15% of areas across six cities: Bengaluru, Mumbai, New Delhi, Pune, Hyderabad, and Varanasi. The company plans to extend its coverage to about 25% in these markets within the next few weeks.

Pincode is utilizing a hybrid delivery approach, employing its own on-ground fleet and partnering with local kiranas and modern retail stores, rather than relying solely on dark stores. It has also partnered with logistics providers such as Swiggy, Shadowfax, and Loadshare for its delivery services.

According to internal plans, PhonePe aims to fully cover these cities with its quick commerce service during the April-June quarter. A portion of PhonePe's own street team has been reassigned to Pincode, indicating a long-term focus on this business venture. ​