PhonePe ventures into q-comm with 'Pincode' app, targets 15-minute delivery across six cities

Walmart-backed PhonePe has launched its quick delivery service under the brand Pincode. This marks the first attempt by the payments giant to tap into the fast-growing e-commerce space, with a particular emphasis on 15-minute deliveries.

Sources close to the company revealed that PhonePe sees rapid delivery as a key growth area in the next two years, especially as it eyes public listing in 2026.

The new offering comes after PhonePe's exit from the government-backed Open Network for Digital Commerce (ONDC) last year and the shift of its ecommerce venture, Pincode, towards a quick commerce model.

Initially focusing on broader retail, Pincode now operates in select areas of Bengaluru, Mumbai, New Delhi, Pune, Hyderabad, and Varanasi, with 15-minute deliveries already live in 10-15% of these markets.

The company plans to extend coverage to 25% in these cities in the next few weeks, with ambitions to cover the entire urban landscape by the April-June quarter, the report added.

Pincode has taken a hybrid approach to deliveries, utilizing PhonePe’s in-house fleet alongside partnerships with local kiranas and modern retail stores, sidestepping the traditional dark store model often used by competitors.

Additionally, Pincode has onboarded logistics providers like Swiggy, Shadowfax, and Loadshare to ensure smooth operations.