ONDC Continues To Expand, Logistics Startup Delhivery Goes Live On Network

Logistics unicorn Delhivery on Thursday (December 15) said that it has gone live on the government’s Open Network For Digital Commerce (ONDC) platform and would enable sellers to leverage the startup’s extensive network of over 18,000 pin codes in India.  

After successfully integrating with sellers, Delhivery is now ready to begin intercity express parcel movement through ONDC, the startup said in an exchange filing.

“ONDC is a game-changer, and we applaud the government’s vision to create an inclusive platform that levels the playing field for small entrepreneurs from any part of the country to engage with customers present in the remotest corners of India,” Delhivery Chief Technology Officer Kapil Bharati said. 

The ONDC platform, which went live for beta testing in September this year, has been touted as the UPI of the ecommerce industry. Through the platform, the government aims to democratise the segment.

“With ONDC, we aim to empower small businesses and rural entrepreneurs by giving them access to customers across the country,” said T Koshy, MD and CEO of ONDC, adding that Delhivery’s technology, data and infrastructural capabilities would enable building a more inclusive ecommerce community.

As a logistics player providing services across express parcel transportation, part truck load freight, truckload freight, cross-border, and supply chain, Delhivery claims to currently work with over 28K customers, including large and small ecommerce participants, SMEs, and other enterprises and brands.

Anil Agrawal, Additional Secretary (DPIIT), Ministry of Commerce & Industry, said, “Small businesses will now get a fillip to serve consumers across India via Delhivery’s extensive pan-India network. Participation of significant players such as Delhivery adds great momentum to the government of India’s mission to democratise ecommerce.” 

In a press briefing last month, Union Minister Piyush Goyal said that ONDC has already facilitated over 2,200 transactions on the network.

Koshy then said that the order fulfilment rate of those 2,200 transactions was between 60% and 80%. As per him, 70% of the orders were groceries and the rest 30% were in the food category. 

In November, ONDC had 21 active network participants and 22 operational pin codes across Bengaluru. As per ONDC’s website, players including IDFC Bank, Kotak, Paytm, Phonepe, Shiprocket, and Dunzo are live on the platform. Besides Bengaluru, ONDC has also started rolling out its network in cities like Delhi NCR, Lucknow, Cuttack, Coimbatore, Shillong, and more.

ONDC plans to have 900 Mn buyers and 1.2 Mn sellers on the network, and achieve a gross merchandise value (GMV) of $48 Bn in the next two years.