Technology for MSMEs: Around 70 per cent kirana stores in big cities and 37 per cent of in tier-II cities are looking to onboard technology to expand their business.
Technology for MSMEs: Walmart-owned PhonePe is targeting to onboard more than 25 million small kiranas in villages and town in the next one year. On its business app, PhonePe will offer these merchants offer services such as instant payment confirmations, receipts and reconciliations. The company said that it plans to reach 5,500 talukas through its merchant acquisition team that will help generate more than 10,000 jobs in semi-urban and rural areas. Merchants can list their store timings, share their product catalogue and promote home delivery options on their personalised store page on the PhonePe app. The company had in April this year added grocery delivery service to its app and listed kirana stores in the customers’ vicinity for hyperlocal shopping. The company had claimed of having more than 1 crore stores selling groceries and essential items on its app.
PhonePe is now focusing on “kiranas and merchants across small villages and towns are striving to progress and prosper,” Vivek Lohcheb, VP – Offline Business Development, PhonePe in a statement. According to a Deloitte India report in February this year, around 70 per cent kirana stores in big cities want to be tech-enabled while 37 per cent of such stores in tier-II cities are looking to on-board the right technology. Moreover, Tier-II and smaller towns contribute nearly 50 per cent of all shoppers and three out of every five orders for online marketplaces such as Amazon, Flipkart etc. a report titled How India Shops Online by Bain and Company.
The market value of the online grocery market in India was more than Rs 10,000 crore in 2019 and is likely to reach Rs 1.17 lakh crore in 2024, as per statistics portal Statista. According to a report by Zinnov, PhonePe was the distant third player in the online payments segment in India in terms of daily active users (DAU). While Paytm has 39 million DAUs, Google Pay has 19 million DAUs and PhonePe has 17 million DAUs as per the data during Q4 2019 and Q1 2020.