Stake in ONDC acquired by SIDBI to facilitate market access to MSMEs
- ByStartupStory | March 26, 2022
Through an investment of Rs 10 crore, a 7.84 percent stake in Open Network for Digital Commerce (ONDC) — an open public digital infrastructure framework entity has been acquired by small Industries Development Bank of India (SIDBI).
On December 30, 2021, ONDC was incorporated to create a first-of-its-kind open public digital infrastructure in order to develop and transform the Indian digital commerce ecosystem for both goods and services.
Shri S Ramann, CMD, SIDBI said, that they are confident that their investment in ONDC will help so as to develop digital infrastructure, which aims to democratise digital commerce in the country. By lowering cost and effort for them to onboard the ecommerce marketplaces, the infrastructure created would serve as a public good by augmenting market access for MSMEs, particularly micro-enterprises and retailers.
He further added that SIDBI shall actively engage with ONDC to make this ambitious national project a success, along with its network of institutions.
SIDBI also joined hands with Google for piloting a social impact lending programme with financial assistance up to Rs 1 crore at subsidised interest rates to micro, small and medium enterprises (MSMEs), in November 2021.
The partnership aimed to help Indian micro-enterprises make investments in their business operations, including purchasing new machinery and equipment, production infrastructure, and working capital requirements, prioritising women-owned businesses and those engaged in the production of equipment for fighting the pandemic.
Earlier, in partnership with SAVE Society, a pioneer at offering financial products via kiosk banking across India to develop micro-enterprises in villages, SIDBI had also launched project SAFAL.
A pivotal role has also been played by SIDBI in strengthening the MSME sector, considered the backbone of the Indian economy. Various development measures for MSMEs has been rolled out by it, in July 2021.
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