ONDC Monthly Transactions Projected to Reach 50 Million by Year-End: CEO Koshy
The Open Network for Digital Commerce (ONDC), a revolutionary government-backed initiative, has been transforming the e-commerce landscape for smaller businesses since its inception in December 2021. During a recent media roundtable, Thampy Koshy elaborated on the platform’s phenomenal growth and its strategic direction, shedding light on key metrics and the sectors driving this upward trajectory.
Under the visionary leadership of CEO Thampy Koshy, ONDC is poised to reach an impressive milestone of 40-50 million monthly transactions by the end of this year.
Explosive Growth Since Launch
When ONDC launched in December 2021, it set out to democratize the e-commerce sector by providing a level playing field for small and medium-sized enterprises (SMEs). The journey from recording a modest 1,000 transactions in January 2023 to an astonishing 8.5 million transactions in recent months underscores the platform’s rapid adoption and robust infrastructure.
Impressive Order Fulfillment Rate
A critical factor in ONDC’s success is its remarkable order fulfillment rate of around 95%. This high rate of successful deliveries reflects the platform’s efficiency and reliability, enhancing customer trust and satisfaction. It is a testament to ONDC’s effective logistics and the commitment of its network of nearly 550,000 merchants.
Diverse Merchant Base and Sector Growth
The ONDC ecosystem is not just vast but also diverse, with a significant portion of its merchants coming from the mobility sector. Notable services like Namma Yatri, Yatri Saathi, and O-Rickshaw have been pivotal. However, the landscape is evolving. Where mobility transactions once dominated at 95%, they now represent 45% of the total transactions. This shift is indicative of the growing prominence of other sectors, such as food (30%), grocery (15-20%), beauty, personal care, home and kitchen, and electronics.
Mobility Sector
The mobility sector continues to be a vital component of ONDC’s ecosystem. Services like Namma Yatri, Yatri Saathi, and O-Rickshaw have revolutionized urban transportation, making it more accessible and efficient. These platforms offer a seamless experience for commuters, contributing significantly to the overall transaction volume on ONDC.
Food and Grocery Sectors
The food sector, accounting for 30% of transactions, has seen substantial growth. ONDC’s integration with various food delivery services has broadened its appeal to a wider audience. Similarly, the grocery sector, contributing 15-20% of transactions, has benefited from the platform’s extensive reach and user-friendly interface. This growth is driven by the increasing consumer preference for online shopping and the convenience it offers.
Emerging Sectors
Other emerging sectors, including beauty, personal care, home and kitchen, and electronics, are also gaining traction on the platform. These categories are experiencing rapid growth, reflecting changing consumer behaviors and the expanding digital economy.
Build For Bharat Initiative
At the heart of ONDC’s innovative strategies is the Build For Bharat initiative, launched in December 2023. This initiative aims to address e-commerce challenges by fostering innovative solutions. With over 27,000 participants, the initiative has garnered significant support from industry giants like Startup India, Google Cloud India, Antler in India, Protean, and Paytm.
Participants and Winners
The Build For Bharat initiative attracted a diverse pool of participants, culminating in the recognition of standout startups such as Shopeg, OmniFlo, Zepic, Upaz, DPI Corp, and Zceppa. These winners received non-equity grants of up to $40,000, enabling them to further develop their innovative solutions. Additionally, some of these startups may join the Antler India Residency Program, which offers potential equity funding of up to $250,000.
Strategic Vision and Future Prospects
Thampy Koshy ‘s strategic vision for ONDC is not just about scaling transaction volumes but also about fostering an inclusive digital economy. The platform’s ability to support a diverse range of sectors and its commitment to innovation positions it well for sustained growth. The anticipated surge to 40-50 million monthly transactions by year-end will be a significant milestone, marking ONDC’s maturity as a key player in the digital commerce landscape.
Supporting Small Businesses
A core objective of ONDC is to empower small businesses by providing them with the tools and infrastructure needed to compete in the digital marketplace. By lowering entry barriers and offering a robust support system, ONDC is helping SMEs thrive in an increasingly competitive environment.
Technological Advancements
Investing in technology is central to ONDC’s strategy. The platform leverages cutting-edge technologies to enhance user experience, streamline operations, and ensure security. As technology continues to evolve, ONDC is committed to staying at the forefront, adopting innovations that drive efficiency and growth.
Collaborations and Partnerships
Strategic collaborations and partnerships are instrumental in ONDC’s growth. Partnering with leading tech companies and industry players not only enhances the platform’s capabilities but also broadens its reach. These partnerships facilitate the integration of advanced technologies and best practices, ensuring ONDC remains a leader in digital commerce.
ONDC’s journey from its launch in December 2021 to its current status as a rapidly growing e-commerce platform is nothing short of remarkable. Under Thampy Koshy ‘s leadership, ONDC has not only expanded its transaction volumes but also diversified its merchant base and sectoral focus. The platform’s commitment to innovation, efficiency, and inclusivity is driving its success and positioning it for a future where it could very well achieve 40-50 million monthly transactions by the end of this year.