Ecommerce forms only ~6% of the overall commerce market in India, which is comparatively low. In the United States, the share of ecommerce is 24%, and in China, it’s 35%.
Internet Users
65% of online shoppers in India are from the top eight cities, while less than 5% hail from rural areas, compounded by the inadequate online presence of B2C and B2B sellers.
Bright Side?
India's increasing per capita income, which is generally observed to increase the online spending per consumer and discretionary spending is also witnessed
ONDC Currently
In Dec 2023, ONDC exceeded 200,000 daily transactions, totaling over 5.5 million. Mobility leads with 3.5 million transactions, followed by F&B at 12% and Fashion at 11%. Operational in 500+ cities, it aims for 50+ million transactions in FY 2024
ONDC's Future
ONDC barely contributes 3% of the total ecommerce GMV, by 2030, it is projected to grow to a whopping 30% of the ecommerce GMV, estimated to be $1 Tn by then.
How Did UPI Grow?
The volume of UPI transactions grew at a CAGR of 150% between FY18 to FY23. Assuming the same CAGR for ONDC transactions, the number of transactions on ONDC can exceed 12 Bn by 2030.