Paytm founder Vijay Shekhar Sharma-backed Pai Platforms has made a significant move in the e-commerce space by launching a new shopping app on the government’s Open Network for Digital Commerce (ONDC) platform. The latest PaiPai app, developed by One97 Communications, aims to revolutionize the way Indians shop online.
In a strategic shift, Paytm renamed its e-commerce unit to Pai Platforms earlier this year and acquired a seller-side platform on ONDC called Bitsila. This move comes as Paytm’s rival platform, PhonePe, backed by Walmart, also launched a new shopping app on ONDC called Pincode in April.
Vijay Shekhar Sharma has expressed his commitment to sign up at least 10 million merchants on ONDC by the end of 2025, highlighting the platform’s growing importance in the e-commerce landscape. With over 11.8 million users already shopping on ONDC through Paytm, the platform is poised to become a major player in the industry.
The decision to launch a new e-commerce app under the Pai Platforms brand may also be linked to recent regulatory actions taken against Paytm Payments Bank Limited (PPBL) by the Reserve Bank of India. In January, RBI directed PPBL to stop accepting deposits or top-ups in customer accounts due to concerns about non-compliance with KYC and other regulations.
Before rebranding to Pai Platforms, Paytm’s e-commerce arm, Paytm Mall, had raised significant funding from investors like Alibaba and SoftBank. However, Alibaba sold its stake in the company in 2022, prompting a strategic shift in the company’s e-commerce strategy. The launch of the PaiPai app marks a new chapter in Paytm’s e-commerce journey, as it aims to differentiate its fintech and e-commerce businesses in a rapidly evolving market.