The government-backed Open Network for Digital Commerce (ONDC) achieved a new milestone in May 2024, recording 8.9 million transactions across retail and ride-hailing segments. This marks an all-time high and a significant 23% month-on-month increase.
Retail orders surged to 5 million, up from 3.59 million in April, with a single-day peak of 200,000 transactions. For the first time, both grocery and food delivery categories exceeded 1 million orders each, according to an official statement from the network.
In May, the home and kitchen category saw 630,000 orders, while fashion recorded 330,000 orders. The share of food segment orders within total retail orders declined to 20%, down from 76% a year ago, reflecting increased business diversification.
Ride-hailing experienced slower growth, rising from 3.6 million to 3.8 million trips, with Delhi, Uttar Pradesh, and Maharashtra leading in order volume.
The ONDC network now comprises 535,000 sellers, of which 84% are small businesses. The initiative aims to enhance India’s ecommerce penetration to 25%, targeting a gross merchandise value (GMV) of $48 billion in the coming years.
During a recent media roundtable, ONDC CEO Thampy Koshy expressed optimism about achieving 40-50 million monthly transactions by the end of 2024. The network now includes nearly 550,000 merchants, predominantly from the mobility sector. However, the share of mobility transactions has decreased from 95% to 45% as categories like food, grocery, beauty, and electronics gain traction.
Koshy anticipates that food will account for 30% and grocery for 15-20% of future transactions.
Reports also indicate that the Adani Group is planning to enter the ecommerce market through the ONDC platform. According to the Financial Times, the conglomerate intends to integrate its Adani One super app with the network as a buyer app.
The latest figures underscore ONDC’s growing influence and potential to reshape India’s digital commerce landscape.
