ONDC is a private non-profit organization based in India that was founded in April 2022. It is introduced by the Department for Promotion of Industry and Internal Trade (DPIT). ONDC full form is Open Network for Digital Commerce.
What is ONDC
It is a new initiative launched by the Government of India to encourage open networks for the exchange of goods and services. As a result, all marketplace buyers and sellers will have fair opportunities. This will also assist millions of small-scale retailers in expanding their operations.
How Does ONDC Work
The ONDC network is a UPI-style open platform designed to promote e-commerce in India. This will put a stop to Amazon and Walmart’s supremacy in the online market. Open Network for Digital Commerce will enable buyers and sellers to connect and trade online irrespective of the application they use. For example, if seller X is registered on platform A and a consumer is registered on platform B, the consumer can purchase seller X’s items straight from the Open Network for Digital Commerce network without having to register on platform A.
Benefits of Open Network for Digital Commerce
These are the salient features of ONDC that help your business grow,
- While making transactions, ONDC allows sellers and consumers to communicate and gather information using any application.
- It also enables merchants to save data for credit histories in order to contact consumers.
- Both buyers and sellers can use the ONDC portal for all transactions instead of the e-commerce portal.
- ONDC protocols also offer cataloging, inventory management, order management, and order fulfillment to manage the business effectively.
- They can access more buyers using the open network.
- Gives freedom to discover more products and compare the cost.
- Hassle-free digital transactions.
- New business costs are reduced.
- More value chain services, such as logistics and fulfillment.
- Have enough options to find more sellers.
- Better service and faster delivery are the outcomes of hyper-local merchants.
- Good customer experience.
Thampy Koshy (T Koshy) serves as a Senior Advisor at ONDC (Open Network for Digital Commerce) council.
Operations in India
It has already tested its operations in five cities on April 29, 2022: Delhi NCR, Bengaluru, Bhopal, Shillong, and Coimbatore. The activities are carefully focused on retail shops and restaurants in order to recognize transactions in real-time. It may soon be tested in travel and mobility services. Open Network for Digital Commerce also intends to expand its operations to 100 Indian cities by October 2022.
Over 24 companies, including Dunzo, Paytm, Meesho, Gofrugal, GrowthFalcons, and Flipkart, are now in the final stages of integrating their services with this network. Google recently showed interest in joining the ONDC network in order to expand its search and payments operations in India.
ONDC Share Price
According to sources, public and private sector banks have already approached Open Network for Digital Commerce about buying major stakes. ICICI Bank recently announced that it has purchased 10,00,000 equity shares in O N D C for Rs. 100 apiece. Following the acquisition, ICICI Bank will own 5.97 percent of Open Network for Digital Commerce. Over 20 reputable organizations had invested INR 255 crore ($33 million USD) in Open Network for Digital Commerce as of April 2022.
It is currently focused to expand the agriculture sector and speed up e-commerce for the benefit of all stakeholders in the value chain. Hence, it invites leading players in agritech and agribusiness to join the Agri Bootcamp. It will be hosted on 26 & 27 May 2022 in Bengaluru. For more details and to participate in that event, fill out the form below.
The main aim of ONDC is to democratize and decentralize e-commerce in the Indian market. It is a new revolution to end the monopolies of US-based companies. With this platform, consumers and merchants can trade for products and services instead of a central platform or application. This ensures data privacy and confidentiality. You can also check the ONDC website ondc.org for more details.