Govt Launches INR 277 Cr TEAM Initiative To Add 5 Lakh MSMEs To ONDC

Govt Launches INR 277 Cr TEAM Initiative To Add 5 Lakh MSMEs To ONDC

SUMMARY

ONDC will open up opportunities for small and medium businesses to grow, leveraging the digital storefronts, integrated payment systems, and logistics support

Financial assistance will be provided to seller network participants to facilitate smoother onboarding on digital commerce, it said

This will onboard over 5 lakh MSMEs with a special focus on women-led businesses

The ministry for micro, small and medium enterprises (MSME) has partnered with Open Network for Digital Commerce to launch MSME Trade Enablement And Marketing (TEAM) with an allocation of INR 277.35 Cr.

This will help over 5 lakh MSMEs with a special focus on women-led businesses get onboard the ONDC network.

ONDC will open up opportunities for small and medium businesses to grow, leveraging digital storefronts, integrated payment systems, and logistics support. The initiative will also reduce operational barriers and help them reach a wider customer base, the ministry said in a statement.

Financial assistance will be provided to seller network participants to facilitate smoother onboarding on digital commerce, it said.

“The MSME TEAM Initiative is more than just a programme – it’s an opportunity to empower small businesses with the tools and resources they need to thrive in the digital age”, said T Koshy, managing director and chief executive of ONDC.

TEAM comes close on the heels of a spate of developments that took place in the MSME space. Mumbai-based non-banking financial company (NBFC) Infinity Fincorp Solutions raised $35 Mn (around INR 300 Cr) in a Series A funding round, led by existing investor Jungle Ventures to boost its MSME lending outreach.

In the ONDC space, commerce minister Piyush Goyal in early January said that more than 7 Lakh sellers and service providers have so far been onboarded on the network. ONDC claims to have more than 6.38 Lakh sellers and service providers operating across 609 cities. In November, it logged 14.5 million transactions. The introduction of the transaction fee structure appears to be a strategic move to ensure sustainable operations as the network continues to scale.

In December, the government-backed digital commerce venture reported that it will  levy a fee of INR 1.5 for every transaction above INR 250 from January 1.

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