Fintech major PhonePe has shut down its engineering office in the US, ending a four-year-old operation based in the Bay Area. The team, which consisted of seven to eight engineers, worked alongside PhonePe’s main engineering hubs in Bengaluru and other Indian locations. The closure was confirmed in a report by inc42.com, citing sources close to the company.
The US office was established in June 2022 with an initial plan to employ around 10 engineers focused on building technology to support PhonePe’s next 300 million users. The unit was led by Gaurav Lochan, a former Meta engineering executive who joined PhonePe as head of engineering in April 2022. Lochan left the company in July 2026 and is now advising cybersecurity startup Aucert. The decision to close the office was driven by insufficient results and a strategic move to consolidate work and reduce costs, according to inc42.com.
PhonePe’s US engineering office closure highlights challenges faced by Indian fintech firms in maintaining overseas R&D centers. The move aligns with a broader trend of startups optimizing operations amid cost pressures. The company’s main engineering teams remain active in India, supporting its large user base. The shutdown does not necessarily indicate a full retreat from international markets but reflects a shift in operational focus, as reported by inc42.com.
PhonePe’s US office closure comes nearly four years after its launch, with the company continuing to prioritize its core engineering efforts in India. Gaurav Lochan’s departure in July 2026 marks a leadership change coinciding with the shutdown. PhonePe has not publicly commented on the closure, and the company’s future international plans remain unconfirmed, according to inc42.com.