As per the report, a majority of this incremental growth has been driven by retail, with non-mobility orders surpassing 6 Mn transactions in June, up from 3.6 Mn in March
The report further added that ONDC has reduced order volume-linked financial incentives for network participants by as much as 75% starting from the second quarter of this fiscal year
ONDC is an open protocol-based network to enable local commerce across multiple segments, including grocery and mobility among others
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The government-run Open Network for Digital Commerce (ONDC) recorded 10 Mn transactions in June, with 6.1 Mn non-mobility transactions and 3.9 Mn mobility transactions, according to Equirus Securities India Equity Research BFSI sector report.
This comes after ONDC saw rapid traction in May, recording a record 8.9 Mn transactions across retail and ride-hailing segments, a 23% month-on-month (MoM) increase. The state-backed network reported that the bulk of the transaction volume came from the retail segment, which peaked at 5 Mn orders in May, representing a 39% MoM growth from 3.59 Mn in April.
As per the report, a majority of this incremental growth has been driven by retail, with non-mobility orders surpassing 6 Mn transactions in June, up from 3.6 Mn in March. However, mobility transactions declined to 3.9 Mn from 4.1 Mn during the same period.
ET reported the development first.
Launched in 2021 under the aegis of the Department for Promotion of Industry and Internal Trade (DPIIT), ONDC is an open protocol-based network to enable local commerce across multiple segments, including grocery and mobility among others.
The report further added that ONDC has reduced order volume-linked financial incentives for network participants by as much as 75% starting from the second quarter of this fiscal year.
As per the report, the network also conducted pilots for consumer loans and plans to offer larger business-to-business loans up to INR 1-1.5 Cr. Additionally, it is preparing to expand into insurance and investments, with passive funds (index funds and liquid funds) likely to be launched soon.
This comes at a time when ONDC is looking to integrate banks and fintech platforms. This move follows the network’s early pilots for credit disbursal through its platform in partnership with Tata Group’s superapp Tata Neu and Paisabazaar. The banks involved include HDFC Bank, IDFC First Bank, and Karnataka Bank, alongside fintech firms like Fibe and others.
Last month, the Centre launched a new initiative to onboard 5 lakh micro and small businesses onto the ONDC platform. The MSME Trade Enablement and Marketing (TEAM) scheme aimed at facilitating this, was launched by Union Minister for Micro, Small & Medium Enterprises (MSMEs) Jitan Ram Manjhi with a budget of INR 277 Cr for three years.
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