PhonePe is Sharpening its e-commerce Ambitions; it Breaks Away from Flipkart

PhonePe, India's leading digital payments platform, is sharpening its eCommerce ambitions. The company has announced that it is breaking away from Flipkart to become an independent entity. It is integrating with the government's ONDC to fuel its growth as ONDC has helped many small and medium businesses. 

This move will allow PhonePe to tap into the vast potential of the e-commerce market in India. PhonePe has made several strategic moves in the past year to bolster its e-commerce ambitions with the offerings such as Switch, which allows you to use your favorite app to shop on PhonePe. Through switch, PhonePe has hosted several categories such as metro & Taxis, food, healthcare, shopping, grocery, and others.

PhonePe is planning to launch a separate app by this month's end for its eCommerce business. This will be a big move by the company and is expected to give it a big boost in the market. The app will be a consumer-facing app and will offer a wide range of products and services.

With this move, PhonePe is looking to take on the likes of Amazon and Flipkart in the eCommerce space. Amazon and Flipkart gained a predominant position with the lauch of M-commerce. PhonePe is well-positioned to do so with its strong payments platform and vast merchant network.

The new pilot project will be launched in its home ground, Bengaluru, with a select number of users. It will then be introduced to other cities in a phased manner.

PhonePe has come a long way since it was launched in 2016. It is now the leading digital payments platform with over 2.5 billion transactions a month and 165 million monthly active users. This platform is adopting the intracity model to solve the problem of the last mile connect in e-commerce.

This move will help PhonePe to expand its reach and tap into new markets. It is also a big boost to the government's Digital India initiative. With the take-off of the e-commerce plan, PhonePe will compete with Flipkart Quick and other fast delivery services in the market. For the entry into ONDC, PhonePe has earmarked $ 15 million to be spent over the next 18 months.

So far, PhonePe has been largely dependent on Flipkart for its growth. But this move will help it to become independent and grow on its own steam. It is a big challenge and risky as nowhere in the world has any payment platform become a marketplace.

But, with its strong parentage, vast user base, and solid foundation, PhonePe is well-positioned to take on the challenge. The company has all the right essentials to succeed in its e-commerce ambitions.

Final Words

PhonePe is certainly one of the most promising e-commerce startups in India. It has a niche for itself in the online payments space and is now looking to replicate that success in the e-commerce domain. With its recent move to break away from Flipkart, PhonePe is looking to go it alone and build a strong e-commerce presence in India. While it remains to be seen how successful PhonePe will be in this endeavor, there is no doubt that the company has the potential to disrupt the online shopping space in India.