Redseer Report Highlights ONDC’s Potential to Drive $300 Billion GMV, Transforming India’s Digital Economy

• ByStartupStory     |    December 8, 2023

In a recent report by Redseer Strategy Consultants, the trajectory of India’s internet economy, projected to reach $1 trillion by 2030, is underscored alongside the pivotal role played by DPIs (Digital Public Infrastructures) in shaping an inclusive and expansive digital future.

According to the report, as India braces for the next wave of transformation, the Open Network for Digital Commerce (ONDC) emerges as a potential disruptor poised to democratize e-commerce across sectors. Redseer anticipates ONDC could generate $250-300 billion in Gross Merchandise Value (GMV) by 2030, signaling a significant shift in the landscape.

Nandan Nilekani, Chairman and Co-founder of Infosys and founding Chairman of UIDAI (Aadhaar), emphasized the symbiotic relationship between the startup ecosystem and DPIs. The report highlights the economic impact and benefits of mature DPIs across different startup sectors, showcasing the disruptive potential of emerging DPIs like ONDC.

Nilekani stated, “This symbiotic relationship will be critical to drive adoption of digital services across all facets of society, drive more equitable opportunities for all, and play a critical role in propelling India to a $10 trillion economy.”

The Redseer report sheds light on the transformative impact of DPIs, not only in governance but also in unlocking over $100 billion in value for Indian startups across various sectors. The democratized digital ecosystem enabled by DPIs has fueled innovation, leading to a surge of startups in India.

Aadhaar, hailed as the linchpin for digital evolution, facilitated easy digital verification at a population scale through eKYC, resulting in substantial government savings. The Unified Payments Interface (UPI) played a crucial role in democratizing digital payments at an unprecedented speed and scale, catalyzing the rapid digitization of small businesses.

Nilekani credited Aadhaar, eKYC, and UPI as the driving forces transforming India across developmental and economic fronts, extending access to governance, banking, mobile internet, and commerce to all. He noted that India achieved in nine years what would have taken 47 years by traditional means.

The report emphasized UPI’s impact, being the ‘reason for being’ for several large-scale payment platforms with hundreds of millions of users. eKYC and UPI have democratized financial investments, enabling customers from remote areas to securely invest in financial assets and transforming lending to the masses.

Beyond finance, UPI and eKYC have played pivotal roles in propelling sectors requiring customer verification, digital payments, or subscriptions, including OTT audio and video platforms, online gaming, e-commerce, and other subscription economy-driven businesses.

As the landscape evolves, the launch of credit on UPI promises even easier access to credit for a large user base, fostering the development of innovative financial products. The Redseer report underscores the transformative impact of DPIs in steering India towards a digital powerhouse and shaping a future marked by inclusivity and growth.

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