ONDC To Start Beta Launch With Bengaluru On September 30th: Report

Open Network for Digital Commerce (ONDC) will start its beta testing with public users in Bengaluru, Karnataka on September 30th. 

The beta launch (of ONDC) will feature over 200 merchants working in grocery, food and beverage segments, a person, who is privy to the development, told Business Today. 

Another source said ONDC’s beta launch will be an invite-only platform initially and will later be available to the general public.

The report further said that ONDC is looking to roll out its network in at least one more city within a month. Through this beta launch, the network wants to collect feedback from public users to improve the user experience. 

During the soft launch, ONDC will be live with five buyer-side apps–Paytm, IDFC, Spice Money, CraftsVilla and MyStore. Besides, seven more buyer-side apps such as PhonePe and Kotak Mahindra Bank, among others, are also in the advanced stages of integration (with ONDC), the above-cited person said. 

On the merchant’s side, ONDC will have 15 seller-side apps which are inclusive of five existing seller-side apps–Digiit, eSamudaay, GOFRUGAL, GrowthFalcons and SellerApp, and 10 new seller apps including Unilever Ushop, Bizom and Uengage, among others 

For logistics, Dunzo and LoadShare have onboarded ONDC and are currently piloting on the network. On the other hand, Shiprocket will start piloting on the network in a few weeks to offer intercity logistic capabilities. Meanwhile, Grab and eKart, Flipkart’s logistics division, are in the last leg of integration. 

What ONDC Wants To Achieve?

In essence, ONDC is led by T Koshy and managed by DPIIT. With this initiative, the government seeks to bring a level playing field in India’s burgeoning ecommerce space. At present, over 60% of the country’s ecommerce sector is being controlled by foreign players Amazon and Walmart-owned Flipkart.  

Besides, the network also aims to enable sellers across diverse sectors to register on platform and consequently offer a range of services to customers. 

Sources informed that ONDC will levy considerably less commissions from seller-side apps and merchants that are listed on its network. It will charge 3% on buyer-side commission from seller-side apps and nearly 10-15% from merchants, as opposed to 25-40% charges levied by other ecommerce platforms.

During Inc42’s The D2C Summit 3.0, ONDC’s CBO Shireesh Joshi said ONDC asks sellers to bring their existing trust onto the network, in turn, helping it build trust. 

Joshi added, “Even on India’s largest ecommerce platform, you actually trust the reputation of the seller. Say, you search for an item and find a seller who has a 2.5 rating, you will not buy matter what you think of the platform. Because it’s the reputation that matters.”

The latest development comes barely a day after centralised bank Bank of India (BOI) infused INR 10 Cr in ONDC through a private placement route. After the completion of this transaction, BOI’s stake in ONDC will increase to 5.56%.

Also, the ONDC network is reportedly in the process of creating an extensive framework for resolving grievances (on the platform) and is likely to publish a draft paper in some time, which will be created according to NITI Aayog’s online dispute resolution policy plan.

As per reports, the network aims to reach about 100 Indian cities, 30 Mn sellers and 10 Mn merchants by the end of this year. 

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