PhonePe’s Pincode Launches Quick Commerce Service From Local Stores Near You in Pune and 5 Other Cities
Walmart-backed digital payments giant PhonePe has launched quick commerce services in Pune through its e-commerce venture, Pincode. This expansion is part of a broader rollout in five other cities—Bengaluru, Mumbai, New Delhi, Hyderabad, and Varanasi—where Pincode has introduced 15-minute deliveries in select areas.
The quick commerce model, gaining significant traction in India, promises rapid deliveries of groceries, medicines, fashion items, and electronics. Pincode has initiated its service in 10-15% of targeted areas and plans to expand coverage to 25% in these cities over the next few weeks. Full city-wide coverage in Pune is expected during the April-June quarter of 2025.
Hybrid Delivery Model
Pincode has adopted a hybrid delivery strategy, using its own fleet of delivery personnel while partnering with local kirana stores and modern retail outlets instead of relying on dark stores. Logistics partners Swiggy, Shadowfax, and Loadshare have been onboarded for deliveries, ensuring faster fulfillment.
To support its expansion, PhonePe has introduced a Minimum Guarantee (MG) model for delivery partners, ensuring a fixed daily income for delivery personnel regardless of the number of orders completed.
Competitive Landscape and Strategy
PhonePe’s entry into the quick commerce segment marks a strategic shift, especially after exiting the Open Network for Digital Commerce (ONDC) last year. The company initially offered a wide range of products through ONDC, but the model did not align with its growth plans. The revamped Pincode service now focuses solely on quick commerce with third-party partnerships.
This move places PhonePe in direct competition with established players like Blinkit, Zepto, and Swiggy Instamart, as well as expanding services from Flipkart Minutes and BigBasket’s BB Now. While competitors primarily rely on dark stores and private logistics networks, Pincode’s hybrid model could offer a unique advantage.
Phonepe’s Pincode app can be downloaded by visiting https://www.pincode.com/
Market Potential and IPO Plans
The quick commerce market in India is projected to grow from $45 billion to $77 billion by 2025, presenting a lucrative opportunity for players like PhonePe. As part of its growth strategy, PhonePe is also preparing for a public listing in 2026. The company’s IPO plans were previously delayed due to regulatory volume caps in the UPI payments market, where it currently leads.
In the last financial year, PhonePe reduced its net loss by 29% to ₹1,996 crore while boosting revenue by 74% to ₹5,064 crore, reflecting a strong growth trajectory ahead of its IPO plans.
