Entering its Beta phase, the Open Network for Digital Commerce (ONDC) has been launched in Mumbai, Delhi NCR (including Noida, Gurugram, and Faridabad), Chennai, Hyderabad, and Kolkata. This move comes after successfully scaling seller densities in these cities. ONDC aims to create an open network that connects buyers and sellers across India, providing a platform for seamless digital commerce.
According to ONDC’s recent announcement, consumers in these seven cities now have access to the network. They can purchase products from sellers on the ONDC platform through four active buyer applications: Paytm, Mystore, Spice Money, and Magicpin. With more than 40,000 sellers spread across over 200 cities, ONDC has established a significant presence in the market. The recent Beta phase introduction has seen over 18,000 sellers operating in the five newly added cities.
The journey towards the Beta phase began with the Alpha phase, which was launched in April 2022. During the Alpha phase, live transactions were tested with a select group of sellers and buyers. The objective of transitioning to the Beta phase is to allow consumers to experience the open network, gather real-time feedback, and test the network at a larger scale before the nationwide rollout.
T Koshy, the Managing Director and CEO of ONDC, expressed his insights on this development. He highlighted that the network initially started with Bengaluru and Meerut, gradually expanding to include more sellers. The aim of the Beta announcement is to encourage more businesses to join ONDC, enabling them to gain an early-mover advantage. Additionally, as the network expands into new consumer territories, it presents opportunities to enhance and refine the platform based on insights gained.
The Department of Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce of the Government of India leads the ONDC initiative. Its primary objective is to establish open, unbundled, and interoperable networks that reduce reliance on a single platform. By fostering competition and innovation, ONDC aims to create a more inclusive and efficient digital commerce ecosystem in India.
With the Beta phase now underway, ONDC is poised to further expand its network and solidify its position in the digital commerce landscape. The platform’s open and interoperable nature holds the potential to unlock new opportunities for buyers and sellers, promoting healthy competition and empowering businesses across the country. In addition to its expansion into the Beta phase, the Open Network for Digital Commerce (ONDC) is actively working towards achieving its vision of an open and interconnected digital commerce ecosystem. The initiative aims to eliminate the barriers and dependencies associated with traditional closed platforms by providing a set of specifications that promote open, unbundled, and interoperable networks.
By fostering competition and innovation, ONDC seeks to empower businesses of all sizes, from small local sellers to large enterprises, and create a level playing field for market participants. The platform’s open nature allows sellers to reach a wider customer base and gives buyers access to a diverse range of products and services. This not only promotes fair competition but also fosters economic growth and drives digital inclusion.
The ONDC’s collaboration with prominent buyer applications such as Paytm, Mystore, Spice Money, and Magicpin further enhances its accessibility and convenience for consumers. These applications serve as gateways to the ONDC network, enabling seamless transactions and a user-friendly experience for buyers. The real-time feedback gathered during the Beta phase will be invaluable in identifying areas for improvement and fine-tuning the platform’s functionalities before its nationwide rollout.
As the platform continues to evolve, it is expected to attract more sellers, buyers, and partner applications, further expanding its network and impact. The open network model introduced by ONDC has the potential to revolutionize the way digital commerce is conducted in India, empowering businesses and consumers alike and contributing to the overall growth of the country’s digital economy.
