PhonePe has launched Pincode, a new app for consumers that will be part of India’s Open Network for Digital Commerce (ONDC) framework, as the Walmart-backed fintech decacorn looks to complete a full three months at Flipkart After stepping up its e-commerce foray into the payments startup’s separation of ownership.

Buyer app Pincode will focus on hyperlocal commerce. It will be available for download on Google Play, and the App Store, PhonePe co-founder and CEO Sameer Nigam said at a launch event in Bengaluru. Pincode will be available in six categories: Groceries, Food, Pharmacy, Electronics, Home Decor and Fashion. Starting with Bengaluru, Pincode will expand city by city, Nigam said. However, the company plans to limit its expansion to 10 cities in the first year.

Customers can search for stores by browsing categories and have multiple shopping carts simultaneously, with one active cart per store. Buyers can also save multiple shopping carts.

Nigam said their goal is to have 100,000 orders per day on the app by December.

PhonePe marks the first time ONDC has a player-specific app. ONDC is an initiative of the Department of Industry and Domestic Trade Promotion (DPIIT) of the Ministry of Commerce.

The rollout of ONDC started with a limited crypto in Bengaluru last September. Unlike Paytm, IDFC, Mystore, Craftsvilla, and Spice Money are all buyer apps.

In March, ONDC expanded into mobile beyond food, grocery and e-commerce as the network added Namma Yatri to the platform. While two cities are in the testing phase of ONDC, 181 cities are in the testing phase.

PhonePe currently operates in the e-commerce space through “Switch”, offering various services such as hotel and travel bookings, food and grocery delivery, online pharmacies, subway bookings, etc., similar to its biggest rival, Paytm. The entry of ONDC will further put PhonePe in direct competition with Paytm, which already has an ONDC platform integrated with its app.

PhonePe’s move to launch a new consumer-facing e-commerce app comes amid a massive $1 billion fundraising effort announced earlier this year. The company has raised $650 million from investors, including General Atlantic, Tiger Global and Walmart. The fundraising makes PhonePe the most valuable fintech startup in India, with a valuation of $12 billion.

PhonePe said it would use the funds to invest in infrastructure, including developing data centres, and new businesses, including insurance, wealth management and lending. PhonePe will also focus on UPI lite and UPI credits.

While PhonePe’s new funding puts it at a valuation more than 2x the market cap of Paytm, which will go public in November 2021, well above its market cap, its FY22 (the fiscal year 2021-22) revenue is less than half that of Paytm. As of FY22, Paytm recorded revenue of Rs 3,892.40 crore, while PhonePe recorded revenue of Rs 1,646 crore. The Walmart-backed company’s new initiatives, such as lending and a stronger e-commerce foray, could boost its revenue in the coming quarters.

PhonePe was founded in 2015 by former Flipkart executives Sameer Nigam, Rahul Chari and Burzin Engineer. With over 400 million registered users, the fintech company is the market leader in Unified Payments Interface (UPI) transactions. The company has a 47% market share in monthly UPI volume.

In 2017, the company expanded into financial services, allowing customers to buy gold, insurance and mutual funds on its platform and pay bills and utilities.