ONDC aims to start operations by August, launch a pilot next month

Apart from retail, network to also include food delivery, travel, tourism & wholesale trade

Open Network Digital Commerce (ONDC) aims to start operations by August and will launch a pilot next month.

The network will not be restricted to retail but give buyers a platform for food delivery, tourism and hospitality, travel, mobility, and wholesale trade.

It will not be just B2C (business to consumer) but also B2B (business to business).

Currently, PhonePe, Paytm, Dunzo, sellerapp, Microsoft, Tally, Gofrugal, FarEye, GrowthFalcons, eSamudaay, goodbox and the Federation of All Indian IT Associates are in an advanced stage of integration with ONDC, said a source.

Discussion is on with more than 80 players across e-commerce to plug into the network. These players include India Post, BHIM, Google Pay, Reliance Retail, Max Wholesale, Metro Brands, Zoho, Shoppers Stop, Government e-Marketplace, Pay Nearby, and Samsung.

ONDC ran a hackathon in February, with 140 entities including Microsoft and other small start-ups, T Koshy, managing director and chief executive officer, ONDC, told Business Standard.

Koshy said: “People who are in direct services related to consummation of transactions commerce will become part of the network either as buyer or seller.”

“The network is going to give a boost to the MSME (micro, small and medium) sector because today as long as they are able to get their catalogue digitally visible they will have equal visibility as much as somebody who’s part of a larger network.”

The project is sponsored by the Department for Promotion of Industry and Internal Trade (DPIIT) and it has set it up as a non-profit organisation.

According to a source in the know, ONDC’s investors are the National Stock Exchange, National Payments Corporation of India, BSE, CDSL, QCI, Protean, IDFC First Bank, HDFC Bank, Kotak Mahindra Bank, ICICI Bank, Axis Bank, SIDBI, Punjab National Bank, State Bank of India, Nabard, Bank of Baroda, and CSC E-Governance.

A source in the know said all players would have an equal shareholding in ONDC and had invested because of the confidence they had on its ability to transform the economy in general and digital commerce in particular.

ONDC intends to increase the gross merchandise value of digital transactions from Rs 4.5 trillion annually to over Rs 7.5 trillion in the next five years.

It also intends to expand the coverage of retailers using digital commerce from 15,000 to more than 2 million in five years and expand the share of Indians using e-commerce to buy online from 90 million users to more than 250 million.

The network aims to provide more access to businesses by increasing its discoverability at a low cost, autonomy (due to multiple choices for being digitally visible) and also value chain services (e.g. logistics) to support business growth, according to a presentation made by ONDC to network participants, and reviewed by Business Standard.

For buyers, ONDC’s protocol will provide access to more sellers and therefore more choices (in the long term better prices, market-driven and sustainable), enhanced service levels, and faster deliveries.

For technology platforms, ONDC will provide lower time-to-market and time-to-scale. Platforms can focus on their strengths -- consumer or seller acquisition -- while other network partners focus on the other side. ONDC will also provide newer opportunities for start-ups to drive innovation in the commerce value chain, according to the presentation.