Prime Minister Mr. Narendra Modi praised the Open Network for Digital Commerce (ONDC) for empowering small businesses and revolutionizing e-commerce in India. Union Minister for the Ministry of Commerce and Industry, Mr. Piyush Goyal highlighted the platform’s growth, with over 200 participants, 700,000 sellers, and services spanning 600 cities. Since its launch in 2021, ONDC has facilitated more than 150 million transactions across 1,110 cities and towns, aiming to democratize e-commerce. Monthly transactions reached 14.4 million as of November 2024, with a target of 30–40 million by March 2025. The platform has attracted multiple startups and unicorns like Zerodha, PolicyBazaar, and Physics Wallah, expanding its reach across domains such as food delivery, e-commerce, and cab-hailing.
Despite its growth, ONDC faces challenges in platform awareness and performance. Brands like True Elements, which joined ONDC in early 2023, reported a significant decline in sales in 2024 compared to other marketplaces where their gross merchandise value is much higher. While ONDC offers cost-effective access to a mass audience, its visibility among customers remains limited. This highlights the need for increased awareness and engagement to realize the platform’s full potential in transforming India’s e-commerce ecosystem.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.