News Update

ONDC inks MoU with SIDBI for the growth of MSME ecosystem

• ByStartupStory     |    August 10, 2022

Open Network for Digital Commerce (ONDC) had signed a Memorandum of Understanding (MoU) with the Small Industries Development Bank of India (SIDBI) to bring small and medium-sized companies onto the ONDC network, thereby enhancing their involvement in the e-commerce market.

With ONDC, a first-of-its-kind initiative to democratise the nation’s e-commerce ecosystem, SIDBI, the primary financial institution established for the promotion, financing, and development of the Micro, Small, and Medium Enterprise (MSME) sector, will work together to benefit the MSME sector of the country.

The partnership between ONDC and SIDBI aims to develop a programmatic strategy for MSMEs, beginning with educating the market about ONDC and its protocol, then defining MVPs, and lastly enabling participants and their ecosystems to go live and conduct transactions on the ONDC digital network.

 “We are building a network of networks and through this MoU, we will connect the SIDBI network with ONDC, which will revolutionise the ecosystem of small industries. This initiative will be a driving force to initiate the participation of the small industries across the country onto e-commerce on a larger scale and enable their growth.”shared T. Koshy, MD & CEO, ONDC.

“SIDBI is very keen to ensure the success of this important national initiative and it will leverage its strong relationships with all major MSME industrial clusters in the country starting with Morbi, Coimbatore, and Ludhiana for engagement with ONDC. SIDBI will also facilitate the engagement of ONDC with its network of partner grassroots agencies, inter-alia, working for market access to informal enterprises. Three partners being introduced to ONDC are Annapurna Finance Pvt. Ltd, Access Livelihoods Group, and the women’s co-operative ‘Looms of Ladakh’. SIDBI will also use its strong presence in the fintech ecosystem to explore e-commerce embedded financing solutions.”S. Ramann, CMD, SIDBI, commented about the collaboration.

The collaboration intends to alter the MSMEs market by integrating MSMEs into the ONDC network and increasing their involvement in e-commerce.

 

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