Vijay Shekhar Sharma-backed PaiPai app was mistakenly launched, removed now

Vijay Shekhar Sharma, MD and CEO of Paytm

PaiPai, an app on the Open Network for Digital Commerce (ONDC) launched by the Vijay Shekhar Sharma-backed Pai Platforms, was mistakenly launched ahead of schedule on Google Play Store earlier this month and now has been removed, according to sources.

While Paytm does not own any shares in Pai Platforms, the 'PaiPai' app has been developed by the fintech major's parent entity One97 Communications, according to its listing details on Playstore that was visible a couple of weeks ago.

Although, the app can’t be seen on Play Store anymore, those users who had downloaded it earlier have been logged out permanently.

Sources in the know also said that it was a beta version of the app for testing within a closed user group and currently more features are being added. The final app would take at least a month or two to be launched in a full-fledged manner, they said.

A Pai Pai spokesperson said, "Our app was part of our ongoing exploration of new concepts, reflecting our commitment to innovation. Each project undergoes careful consideration before any decisions are made.”

“While we can't confirm its relaunch now, we're focused on improving our platform through experimentation and feedback. We'll keep you updated on any future developments,” they added.

The government-backed ONDC has become an important focus area for Paytm where it sees its next big opportunity.

At an industry event in the national capital last year, Paytm's Sharma said, "Commerce is a natural extension for us. We are committing to sign up at least 10 million merchants on ONDC before 2025 ends."

Sharma had said that 11.8 million users had already shopped on ONDC through Paytm.

Meanwhile, Pincode, a shopping app on ONDC launched by Paytm rival PhonePe in April last year, has surpassed 1 million downloads on the Google Play Store.

Paytm E-commerce Private Limited (now Pai Platforms) has already burnt its hand in e-commerce once before when it ran an app called Paytm Mall. It had raised $400 million from investors like Alibaba and SoftBank at a valuation of over $2 billion in early 2018. However, that bet went sour as Alibaba sold its entire stake in the company at a valuation of just over Rs 100 crore in 2022.

However, ONDC has created a renewed interest among tech companies in India to take another shot at e-commerce.

Multiple tech unicorns, such as Ola, PhonePe, Meesho and Shiprocket, have taken a bet on the government-backed ONDC that is aimed at breaking the stranglehold of a few players like Amazon, Flipkart, Zomato and Swiggy on online retail in the country.

Meanwhile, the volume of monthly retail purchases on the ONDC has grown six times in the last six months to hit 3.6 million in March, compared to over 600,000 in September last year, according to people close to the developments.