ONDC: Transforming Digital Commerce Across India

Incorporated on 31st December 2021 and established by the Department for Promotion of Industry and Internal Trade (DPIIT) of the Government of India, the Open Network for Digital Commerce (ONDC) is a private non-profit Section 8 company. ONDC is a government initiative that aims to democratize digital commerce by allowing all big and small businesses to compete on equal terms.
In July 2024 the government-backed ONDC hit a monthly order of 12Mn and daily orders grew to about 430K. Food and beverages contributed 1.7Mn purchases followed by grocery and fashion transactions of 1.4Mn and 0.6Mn respectively while the rest of the 4Mn trades were supplied by network logistics, personal care, home, kitchen, and retail vouchers, amounting to a total of 7.6 million orders from the non-mobility domain. On the other hand, the balance of 4.4Mn orders out of the total orders was recorded during that month from the mobility domain.
Currently, the network has nearly 630K sellers and service providers in 600 cities, delivering to 1200 cities nationwide. According to an independent study, ONDC has accomplished a 3% market share in food and beverages nationally.
Recently, Ola Consumer announced its partnership with ONDC, aspiring to make commerce efficient, affordable, accessible, and sustainable for all customers.
Not only Ola but several brands from different sectors have joined ONDC and we will now discuss and try to analyze their involvement, contribution, and impact within the network.

Logistics Tech:

Shiprocket

An e-commerce platform, Shiprocket was one of the initial brands to collaborate with the ONDC network. In 2023, it announced the alignment of the Shiprocket seller app with ONDC, aiming to offer a secure and uninterrupted onboarding experience to the sellers on the network. Shiprocket planned to facilitate 5 key categories including Fashion, Electronics and Appliances, Beauty and Personal care, Health and Wellness, and Home and Kitchen on ONDC. This Shiprocket Seller app and ONDC collaboratively will empower sellers from all sectors to access new markets and connect them with new potential customers across India.

Grab

Owned by Reliance Retail, Grab.in is well-known for its role in last-mile logistics, and it collaborated its platform with the Open Network for Digital Commerce in 2022. Established in 2014, Grab.in supplies in restaurants, online and offline retail, e-commerce platforms, online grocers, kirana stores, and pharmacies. According to the startup’s co-founder Pratish Sanghvi, Grab.in is in its primary stage with the ONDC as it started a pilot project in six cities consisting of categories like grocery and small bakery items. Marking the partnership with the ONDC, Grab.in has a vision to support intra-city hyperlocal deliveries. In 2019, Reliance Industries acquired the Mumbai-headquartered startup Grab.in, holding around 80% of the stake in the company. Grab’s integration resulted in Reliance’s first formal entry into the widely celebrated network, aiming to break the dominance of e-commerce companies Amazon India and Flipkart by empowering unorganized retailers online.

Loadshare

As per sources, logistics startup Loadshare is ready to collaborate with the government-backed initiative ONDC to develop its two-wheeler fleets to offer bike taxi services. However, neither company has confirmed the news yet. This partnership claims to boost the companies’ delivery capacity and make transportation services more affordable in urban areas.

Delhivery

In 2022, the logistics service provider Delhivery announced its partnership with the government-backed e-commerce network ONDC. After this move, the startup said it is set to offer intercity deliveries across more than 18K pin codes. One of the largest logistics companies in India, Gurugram-headquartered Delhivery stated that with its participation in the network, the firm now aims to empower rural enterprises and small businesses by giving them access to customers from around the nation.

Shadowfax

Shadowfax, a third-party crowd-powered logistics platform, has entered the ONDC to expand its business by providing services to more regions and cities through the network’s pan-India presence. This partnership backed Shadowfax to scale its services to over 12000 cities, allowing more businesses and customers to access their efficient last-mile delivery services.

Shipyaari

The leading logistics and e-commerce solutions provider, Shipyaari has teamed up with ONDC, striving to support sellers, customers, and regional courier partners with its intercity hyperlocal logistics services. With a mission of bringing Bharat closer, this partnership aims to cater to approximately 25,000 new sellers, who can access Shipyaari’s expansive coverage of 29,000+ Indian pin codes. As a participant, Shipyaari will also extend its support to other e-commerce brands by helping them to collaborate with the ONDC protocol.

XpressBees

Logistics company XpressBees has joined the Open Network for Digital Commerce (ONDC) and aspires to provide its pan-India delivery services to over 20,000 pin codes. Through this collaboration with ONDC, XpressBees ensures efficient order processing, tracking orders, and timely deliveries following up with the firm’s plan to capitalize on its expertise and establish itself as a major contributor to the e-commerce industry.

DTDC

In 2023, DTDC Express teamed up with ONDC to fulfill its commitment towards small businesses and e-commerce sellers by empowering sellers on the network with the required tools and support in the widely transforming digital landscape. DTDC aspired to achieve 1500-2000 shipments per day by the end of the year while maximizing its expertise in express and standard B2C deliveries with the help of this reliable network. DTDC currently operates in 5000 live pin codes, serving over 100 cities under the network.

E-Commerce:

Wow

Personal care brand WOW Skin Science joined the Open Network for Digital Commerce with the plan to expand its portfolio by widening its customer base across India. This move will help WOW to be open to buyers from all ONDC seller apps and expand its presence. Discovery commerce startup, Shopalyst played a major role in this partnership between ONDC and WOW Skin Science since Shopalyst’s plugin for Shopify-powered stores will make WOW products easily discoverable on the ONDC network.

Sleepy Owl

Coffee brand Sleepy Owl announced its integration into the ONDC network as the brand’s catalog is currently discoverable through Shopify stores on the ONDC network. Sleepy Owl Coffee has already made a mark in the Indian coffee market by focusing on convenient brewing with its extraordinary innovations. Through this collaboration with ONDC, Sleepy Owl further aims to establish its nationwide footprint while trying to achieve its mission of making India a Coffee Drinking Nation.

Boat

Wearables brand Boat has aligned with ONDC to enable its vision of democratizing e-commerce in India. D2C brand, Boat sells wearables and audio products and claims to manufacture more than 15 million units in India till now. By onboarding ONDC, the brand, Boat now targets to showcase its products on a greater magnitude and unlock the next chapter of its expansion.

Red Bull

The global energy drink brand, Red Bull partnered with a leading e-commerce analytics platform SellerApp to join ONDC. Through this strategic partnership, Red Bull now desires to expand its business and drive unrivaled success in the digital marketplace.
Red Bull’s products are currently available in 236 cities and the brand aims to ensure nationwide accessibility and availability for customers with the help of the ONDC network’s collective strength.

Hindustan Unilever Limited

India’s biggest packaged consumer goods firm, Hindustan Unilever Limited (HUL) is the first fast-moving consumer goods (FMCG) firm to join the ONDC network through its multi-brand D2C platform, UShop. HUL plans to onboard nearly 1.3 million Kirana stores to compete with other e-commerce and quick-service grocery retailers on the central government’s Open Network for Digital Commerce network, while this move by HUL made a mark as a business extension of its internal ordering app Shikhar.

PepsiCo

Leading beverages company Pepsico India is on board with the ONDC network, aiming to reach a wider customer base by offering vast choices for customers on the network. the President of PepsiCo India, Ahmed ElSeikh confirmed that this partnership with ONDC will be marked as a pivotal move by the company since it will influence the latest technology platform solutions to make the company perform faster in the market and simultaneously ensure to boost consumer experiences.

Ola

Indian transportation company, Ola has joined the government-backed Open Network for Digital Commerce (ONDC) to offer food delivery services through an app called ‘OLA ONDC Food’. As per the sources, Ola has been testing its new features with a small number of consumers on the network and the startup will not launch a delivery app separately.

Villain, MyFitness, and Priyaasi

Bengaluru-headquartered, house of brands, Mensa Brands has launched its three portfolio companies on ONDC. These portfolio companies include men’s lifestyle brand Villain, peanut butter brand MyFitness, and jewelry and accessory brand Priyaasi. This strategic move by Mensa will allow these three portfolio brands to expand their businesses and reach a larger customer base by offering products accessible to buyers on the ONDC platform.

SignCatch

The PaaS (platform-as-a-service) solution provider SignCatch introduced two platforms, Bech.app (B2B Seller) and OrderDe.com (B2B Buyer) on the ONDC network to enable cross-border trade. SighCatch partnered with Proxtera to activate B2B sellers on the Bech—app to receive export orders from Proxtera’s B2B buyer platform. Thus, SignCatch efficiently executed the world’s first export order on the Open Network for Digital Commerce.

Eunimart

An end-to-end solution provider for business operations, Eunimart has collaborated with ONDC to enhance global commerce by helping SMEs to go international.

eSamudaay

A software solution provider eSamudaaye has joined the ONDC’s network to strengthen rural businesses by serving across India. TyohaarForever, a tech-enabled platform launched by eSamudaay, gathers India’s vast range of hyperlocal products the local artisan produces. Through this partnership with the ONDC, eSamudaay now dreams of making these local products accessible to over 18,400 pin codes nationwide.

Alpino

Alpino Health Foods has joined the ONDC network as a seller with the help of Shopalyst’s ONDC plugin for Shopify-powered stores. This collaboration will benefit the D2C brand Alpino as the company would expand its reach and presence to an extensive national market through ONDC’s network.

Mystore

ONDC connected Mystore with its 360-degree e-commerce solution making it easier for hyperlocal businesses and SMEs to join the ecosystem of ONDC’s network and reach out to new buyers across India. Mystore-backed Mystore Seller App allows sellers to sell on the ONDC marketplace without suffering from high preliminary commissions.

Marico

Marico is one of the leading consumer products companies that has teamed up with the government’s initiative ONDC. The company said the consumers would be the biggest beneficiaries of this integration, confirming a more convenient and effortless shopping experience. This partnership will also ensure efficient order fulfillment and timely delivery of products to customers.

Meesho

Internet commerce startup Meesho has entered the ONDC’s network to help connect customers with hyperlocal sellers by democratizing the e-commerce ecosystem. The pilot will be launched in Bangalore presently and with the moving time it will expand its presence to other locations while Meesho confirms that the startup has 8 lakh sellers registered on the platform.

Enterprise Tech:

Idea Masters

IdeaMasters is an ONDC-associated marketplace that aims to empower SMEs to expand their businesses by broadening the customer base on the ONDC network through the Seller App. Through this collaboration with the ONDC, IdeaMasters dreams of bridging the gap between rural and urban India by prioritizing employment generation, rural entrepreneurship, and skill development.

uEngage

Established in 2018, the SaaS technology firm for local businesses, uEngage became the first tech startup from Punjab and Chandigarh to join the ONDC, to empower local businesses by offering them technology that is accessible and affordable. Through this integration, more than 1000 local and small businesses have entered the e-commerce space and benefitted from the services provided by uEngage.

nStore

As a participant in the ONDC network, nStore has announced that the well-known brand of portable gadgets, Portronics will be available on the ONDC marketplace through nStore. This partnership aspires to unlock new opportunities and growth for the sellers through this network.

GlobalLinker

The leading digital networking community for SMEs, GlobalLinker teams up with ONDC aiming to encourage small businesses by unlocking the potential of a bigger business landscape. On this network, SMEs can witness a boost in orders, visibility, and a wide market reach with the help of the necessary tools and resources provided by GlobalLinker. This partnership also claims to offer to create SMEs’ digital catalogs and to become ONDC-powered within 24 hours.

Rapidor

ONDC launched the B2B e-commerce company Rapidor to enable the seller-side platforms. This move will encourage MSMEs to utilize the network through B2B transactions, overcoming limited credit access, and high logistics costs.

Bizom

FMCG firms UNIBIC and The Good Stuff (Lublt) joined the ONDC through the Bizom Seller App. Technology service provider, Bizom aims to accelerate and encourage these startups to experience the end-to-end ecosystem by making the e-commerce marketplace accessible and strengthening the customer base at a much lesser cost across India. According to reports, Bizom will take care of the offline and online inventories and offer unified data reports and insights for small and local businesses through the ONDC network.

Bitsila

Pai Platforms, an earlier Paytm E-commerce is one of the largest buyers on the Open Network for Digital Commerce and the company has acquired a retail business platform Bitsila. This acquisition will benefit the merchants via the Bitsila Seller App in ONDC’s network. However, the Pai Platform, the third largest seller app on this network, aims to provide convenience across the platform.

Primarc Pecan

Primarc Pecan is a leading e-commerce brand that provides end-to-end solutions for brands. The company has announced its integration with the ONDC, aiming to democratize India’s e-commerce industry. By joining this network, Primarc Pecan promises its partner brands to handle all things e-commerce including Marketplace management, D2C management, Warehousing operations, and so on. On the other hand, this partnership will also unlock a wider customer base and expand the market share for the brands.

GrowthFalcons

A restaurant point-of-sale software provider, Menson has collaborated with GrowthFalcons, a seller marketplace to team up with the ONDC network, onboarding its food and beverages restaurants. Through this collaboration, the companies aim to enter the west and south Indian markets since they plan to give their customers access to local cousins at lower prices. Soon, GrowthFalcons and Menson plan to expand their business by onboarding 30% of Menson’s restaurants onto ONDC.

Addble

Imphal-headquartered digital commerce startup, Addbe Solutions Pvt. Ltd has integrated with the ONDC network as a seller network participant to help sellers connect with buyers across India. Being the first tech company from the eastern as well as northeastern parts of India to join the ONDC network, Addble is happy to contribute to India’s mission of democratizing digital commerce.

Fintech:

Spice Money

The fintech startup Spice Money delivers various financial services to the masses from rural areas through its Adhikaris (small merchants). Spice Money has joined the ONDC’s network to empower small businesses in rural areas. Spice Money, through its Adhikaris, plans to facilitate other smaller business owners who do not have access to digital commerce space by selling their products nationwide.

Pincode

On 4th April 2023, PhonePay launched a new shopping app named Pincode, which went live on the ONDC network. This app claims to encourage local shopkeepers and sellers to connect with customers across the city via the digital space. Not only the local businesses but also the partnership will strengthen the entire local ecosystem by promoting MSMEs and farmers through this ONDC network.

Paytm

Paytm E-commerce Private Limited (PEPL) teams up with ONDC to enable users to order food from the best restaurants with great discounts by using the Paytm App. Through this partnership, Paytm users can access over 30,000 restaurants such as McDonald’s, Café Coffee Day, Faasos, etc. live at the best prices on the network.

Airpay

Financial services provider, Airpay partnered with the government’s initiative, Open Network for Digital Commerce to regularize digital commerce in India. Presently, Airpay claims to offer banking and financial services to more than 60 million customers in 561 districts and 7000 villages in 36 states and union territories. Through this partnership, Airpay thrives in encouraging businesses to have a large customer base by offering multiple products.

Several leading fintech companies, including Digit and Novopay, have also integrated with the Open Network for Digital Commerce (ONDC). This collaboration is a significant step towards democratizing digital commerce in India.

Consumer Services:

Magicpin

Magicpin has become the largest restaurant aggregator on the ONDC network with more than 22,000 restaurants onboarded while over 7000 restaurants are in Delhi NCR and more than 6500 restaurants are based out of Bangalore. The retailers aggregator firm, Magicpin plans to empower small and medium local businesses in the food and beverages segment to strengthen their customer base while generating more businesses through the integration with ONDC.

Dunzo

Consumer services provider, Dunzo joined the ONDC in 2022, expanding its business as a logistics aggregator. In 2023, the Dunzo Seller App went live in the ONDC’s network, aiming to onboard over 20,000 merchants across India in the next 45 days from the day it joined.

Rebel Foods

The cloud chicken company, Rebel Foods collaborates with the Open Network for Digital Commerce, aiming to expand its D2C platform EatSure by bringing nine restaurant brands including Behrouz Biriyani, Oven Story Pizza, Faasos, Sweet Truth, LunchBox, The Gold Bowl, Firangi Bake, The Biriyani Life and Wendy’s on the network.

Travel & Transport Tech:

Namma Yatri

A ride-booking app, based in Bengaluru, ONDC-powered Namma Yatri has collaborated with Auto Rickshaw Drivers’ Union. The ‘Digitally Empowered Inclusive Stories’ section by the Economic Survey of India (2023-24) confirmed that Namma Yatri successfully increased driver earnings while reducing cancellation rates.

In conclusion, the integration of companies from diverse sectors into the Open Network for Digital Commerce (ONDC) underscores a transformative shift in India’s digital commerce landscape as ONDC is creating a more inclusive and accessible e-commerce ecosystem. This collaborative effort is instrumental in advancing India’s mission to democratize digital commerce by unlocking opportunities for both sellers and buyers, leading to the nation’s vision of a thriving digital economy.