Dunzo, eKart, PhonePe, and 20 other Start-ups are accelerating their Efforts To Join ONDC
- ByStartupStory | May 16, 2022
ONDC – Open Network for Digital Commerce (ONDC) is an open protocol network that will allow any network-enabled application to explore and engage local commerce across sectors such as shopping, hotel booking, mobility, food order and delivery, and travel, among others. ONDC is different from the present platform-centric e-commerce system, which allows both the buyer and seller to complete a commercial transaction on the same system or Platform.
24 eCommerce startups are trying to integrate with the Indian government’s ambitious Open Network for Digital Commerce (ONDC) initiative shortly after the trial phase was launched. On April 29, the platform became operational in five cities: Bhopal, Bengaluru, Shillong, Delhi NCR, and Coimbatore. Hyperlocal delivery company Dunzo, Flipkart’s logistics arm Ekart Logistics and Online payment service provider PhonePe were among those in the process of integrating with firms in the network.
Real-time payments in the retail and restaurant food delivery sector have begun in various cities under ONDC, including Shillong and Delhi. The ONDC is now concentrating its efforts on stores and eateries, according to the article.
The government is attempting to make systems more robust before the project’s formal launch. The entire exercise will most likely take six months to stabilize. While merchant catalogs are being created in Coimbatore and Bengaluru, the 24 companies are in various phases of integration that might take up to three months. “With this trial phase, we want to see how this works in a real-world setting where people make purchases, deliver packages, cancel orders, and receive refunds.” We will build a playbook, which will be a set of norms, once these lessons are understood,” Anil Agrawal, assistant secretary in the Department of Promotion of Industry and Internal Trade (DPIIT), stated at the time of the launch.
Agrawal further stated that ONDC plans to integrate 3 million vendors and 1 million retail retailers online. In six months, the objective is to extend to 100 cities.
ONDC is a business sector-led non-profit organization that was founded on December 31, 2021. According to a survey by Bain & Company, India is considered as the world’s fourth-largest retail market, valued at roughly 810 billion dollars. According to an Inc42 analysis, the addressable e-commerce industry in the nation is estimated to reach $200 billion by 2026.
Prominent banks have also expressed an interest in investing in ONDC. For INR 10 crore, the State Bank of India (SBI) acquired a 7.84 percent interest in the recently announced venture. Earlier, HDFC and Axis Bank Kotak Mahindra each bought a 10% interest in the ONDC for INR 10 crore.
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