ONDC Sparks Conversations on the Global Expansion of Indian E-commerce

At the Dataquest Leadership Conclave, the Fireside Chat titled “Can Indian E-commerce Go Global?” ignited insightful discussions about the Open Network for Digital Commerce (ONDC). Led by Dhaval Gupta, Director of CyberMedia Group, and Saransh Agrawal, Chief of Staff at ONDC, the conversation delved into ONDC’s potential to revolutionize Indian e-commerce and extend its influence globally.

Dhaval Gupta emphasized the significance of the developments and discussions surrounding ONDC (Open Network for Digital Commerce), which has garnered attention over the past couple of years. Gupta highlighted the common discourse surrounding ONDC, acknowledging its potential to revolutionize retail and surpass UPI (Unified Payments Interface) in impact.

From inception to achieving 8 million transactions per month by January. Ambitions to elevate India’s e-commerce penetration from 5 to 7%, to 40 to 50%, drawing parallels to UPI’s impact.

Gupta and Agrawal elucidated the essence of ONDC as a Digital Public Infrastructure (DPI), emphasizing its role as a protocol rather than a standalone platform. They discussed ONDC’s simplicity and inclusivity in facilitating seamless transactions across diverse digital systems.

ONDC’s Growth Trajectory

The conversation traced ONDC’s growth from its inception to its remarkable achievement of 8 million transactions per month by January. Highlighting ONDC’s significance, Agrawal emphasized its role in enabling the transaction of any product or service across the network, ranging from groceries to insurance to gig worker services, thereby transcending the limitations of existing closed platforms or marketplaces. Agrawal underscored ONDC’s ambition to elevate India’s e-commerce penetration from the current 5 to 7% to 40 to 50%, drawing parallels to the transformative impact of UPI on digital payments.

Impact and Innovations

Agrawal shared stories of impact and innovative business models emerging from ONDC’s adoption, showcasing its ability to empower businesses of all sizes. He highlighted ONDC’s focus on domains like groceries and food initially, despite their perceived challenges, to catalyze adoption. He emphasized that ONDC doesn’t function as a platform bringing customers or sellers but rather facilitates transactions between existing players. Currently, there are around 50 sales-side applications ranging from large enterprises like Jubilant or Rebel Foods to smaller players like local street vendors. On the demand side, there are approximately 15 different applications, including major players like Ola, Paytm, and PhonePe, as well as initiatives like Common Service Centers (CSC) enabling digital purchases in every village across India. The growth is multifaceted, spanning various segments such as mobility, B2B transactions, exports, fashion, beauty, electronics, and D2C brands. Saransh highlighted innovative business models like Namay Yatri in Bengaluru, which operates without commissions, opting for a subscription-based approach, empowering auto and taxi unions to run operations. Additionally, Saransh mentioned the burgeoning participation of jewelers and farmer producer organizations (FPOs), with thousands of FPOs representing hundreds of farmers each now selling directly to consumers online through ONDC.

ONDC is driving innovation across various sectors, empowering businesses of all sizes with compelling stories of impact. From groceries to insurance to gig worker services, ONDC is catalyzing adoption and reshaping the e-commerce landscape.

Global Aspirations of ONDC

The discussion shifted to ONDC’s global aspirations, Dhaval reflected on ONDC’s original aim of extending beyond online commerce, particularly focusing on bringing smaller businesses online, especially in tier two, tier three, and rural India. However, he noted the current discussion around ONDC’s global expansion and its role in facilitating Indian retailers’ journey to global markets.

Agrawal outlined its role in facilitating Indian retailers’ entry into international markets. He emphasized ONDC’s expansion into Singapore and its partnerships with international buyers as pivotal steps towards global integration.

Addressing Concerns

Concerns about data security and privacy within ONDC were addressed, with Agrawal assuring attendees of ONDC’s commitment to secure transactions and privacy protection. He highlighted ONDC’s non-profit nature and its adherence to stringent security measures.

The Fireside Chat concluded with attendees gaining a deeper understanding of ONDC’s potential to reshape Indian e-commerce and extend its influence globally. With its innovative approach and inclusive infrastructure, ONDC stands poised to lead the way in digital commerce, empowering businesses and consumers alike to thrive in an interconnected world.

aanchalg@cybermedia.co.in