Top-Level Exits Continue At ONDC As Independent Director Arvind Gupta Quits

Open Network for Digital Commerce’s (ONDC) independent director Arvind Gupta has stepped down from the post, the latest high-profile exit from the government-backed ecommerce network.

Confirming Gupta’s exit, ONDC said in a statement, “Arvind Gupta, a key founding member of ONDC, has played an instrumental role in shaping ONDC and guiding its early growth. After completing a full three-year term of impactful guidance as an independent director, he has decided not to continue in his role as independent director. Gupta remains a strong advocate of ONDC’s mission and will continue to extend his support to the network.”

The development was first reported by ET. 

Gupta has an overall 30 years of experience in entrepreneurship and leadership, and is also the cofounder and head at Digital India Foundation.

Last month, ONDC’s managing director and chief executive, T Koshy stepped down from his role after a three-year stint. Prior to that, the network’s chief business officer, Shireesh Joshi, also called it a day after a three and half year stint. 

A month after Koshy’s exit, ONDC’s chief operating officer Vibhor Jain took charge as the acting CEO of the platform. 

With Gupta’s exit, ONDC is now left with only three independent directors which includes Adil Zainulbhai, chairperson, Capacity Building Commission; Anjali Bansal, founder and chairperson, Avaana Capital and Ritesh Tiwari, executive director and chief financial officer at Hindustan Unilever.

Founded in 2021, ONDC is a DPIIT-led digital commerce network platform which enables local sellers to reach a larger audience via its network. It is governed by a board of directors and an advisory council. The board includes founding members, shareholders, government nominees and independent directors.

The open network platform was established as an alternative to other ecommerce giants like Flipkart and Amazon to onboard small and local merchants. Unlike others, ONDC does not own a consumer facing ecommerce platform but acts as a network which connects buyers and sellers using standardised API. Buyers, sellers and logistics providers act as participants on the network.

Currently, ONDC has presence in foodtech, consumer goods, financial services, and mobility segments. Earlier this year, the open network platform touched the milestone of 200 Mn transactions.

While the platform has seen a certain amount of success, the growing dominance of quick delivery platforms like Zepto, Swiggy Instamart and Blinkit has overpowered ONDC’s mission. 

The government-backed ecommerce network also witnessed a drop in transaction volume, going from 120 Mn transactions last year to 30 Mn transactions by March this year.