Why PhonePe will not join the super app bandwagon

Sameer Nigam, CEO of PhonePe talking about regulators in India at the Moneycontrol Startup Conclave

While many tech companies and large conglomerates, including the likes of Paytm, Flipkart, Tata Group, Adani, RIL, have joined the list of “super app” aspirants, PhonePe has decided not to go down that road.

“Very early on, we decided that we are not going to try and build a Super App," PhonePe co-founder and CEO Sameer Nigam said during a fireside chat at Moneycontrol Startup Conclave.

He acknowledged the global success of WeChat in China, which began with micro payments and expanded into a multifaceted platform. However, he said, the same model cannot be replicated in India  as users prefer specialised apps tailored to specific needs rather than a single app offering everything.

"The only super app that I've seen globally that really works is WeChat. But their origins were different. They started with micro payments and gaming and chat and everything else got built around that. I don’t think India will mirror that at all."

Since its inception, Walmart-backed PhonePe has expanded beyond its core digital payments services into a range of offerings, including stock broking with Share.Market app, commerce through Pincode, and various financial services like insurance and personal loans.

Despite this growth, the CEO emphasised that PhonePe will not merge these services into a single super app.

"People in India want different apps for each category in their life. We compartmentalise. If it’s food tech today, it’s largely a Swiggy and a Zomato. If it’s cabs, it will be an Ola, Uber or Namma Yatri and so on," Nigam explained.

The company will continue to focus on providing a streamlined user experience, particularly in its core payments service.

"Our primary focus is to make sure we minimise the time it takes for you to make a payment and leave the app. The average session on PhonePe is about seven seconds. So we're not trying to upsell or cross sell [other products] as a habit," Nigam noted, emphasising that PhonePe app is designed to facilitate quick transactions rather than extensive engagement.

As for the company's various offerings, Nigam elaborated, "Of all the categories we’ve entered, there are only two that we’ve kept on PhonePe, which are perfect adjacencies—personal loans and insurance. The rest, like stock broking and e-commerce, have their own dedicated apps."

PhonePe’s recent organisational restructuring reinforces this approach, with separate chief executive officers (CEOs) for each unit.

In November, PhonePe made series of role reorganisations within the firm including naming CEOs for its lending, insurance, and broking businesses as it doubles down on financial services offerings.

Vivek Lohcheb who was heading PhonePe’s offline business was promoted to the role of CEO for Pincode while Ujjwal Jain was out in-charge of Share. Market. Previously, Jain founded WealthDesk which was acquired by PhonePe.

“Instead of thinking of a house of apps, we call ourselves the PhonePe group of companies. Each CEO and their team present their plans separately to founders and the board."

Looking ahead, Nigam confirmed that any future listing would reflect this structure.