According to T Koshy, Managing Director and CEO of the government-run Open Network for Digital Commerce (ONDC), robust participation is coming from a diverse range of small businesses across India, including farmer producer organizations, Kanjeevaram silk weavers, and self-help groups such as Kerala's Kudumbashree.
Koshy elaborated on the inception and rapid growth of ONDC, an initiative by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce. Conceptualized amid the pandemic three years ago, ONDC was officially registered as a company in 2021 and began operations in select areas of Bengaluru by the end of 2022.
“In the last year and a half, ONDC has achieved significant traction,” Koshy said. “We’ve scaled from just 1,000 transactions 15 months ago to a staggering 9 million transactions in May. Similarly, our merchant base has expanded from 500 in January 2023 to 550,000 currently. Notably, about 85 percent of these are small and micro enterprises, including taxi drivers and artisans”.
ONDC aims to revolutionize digital commerce by broadening the reach of retail e-commerce in India, especially to small and micro enterprises that have traditionally been excluded from digital marketplaces.
Koshy highlighted that ONDC's appeal extends beyond major urban centers, with significant activity in tier II and III cities. "Approximately 40-45 percent of our transactions are related to mobility services, which are highly hyperlocal and currently operational in 8-9 cities. Moreover, around 65 percent of daily transactions come from tier II and III cities", Koshy noted. He added that transactions have taken place in roughly 1,000 cities across the country.
