ONDC Achieves 14 Million Transactions in October, Reflecting 7.6% Growth Amid Festive Season

The Open Network for Digital Commerce (ONDC) witnessed a 7.6% increase in transactions during October, reaching 14 million, compared to 12.9 million in September. This surge coincided with ONDC’s decision to boost incentive payouts for participants by 50% for October.

The transaction breakdown shows the mobility segment contributing 5.5 million, a 10% rise, while the non-mobility sector accounted for 8.4 million transactions, marking a 7.6% growth. Within non-mobility, the food and beverage category led with 2 million transactions, followed by groceries at 1 million. The fashion segment saw notable growth, hitting 11 million transactions, up from 9 million in September.

On a year-over-year basis, ONDC transactions soared by 200%, a significant jump from 4.5 million in October 2023. This growth is attributed in part to the strategic increase in incentives, designed to boost engagement during the festive season. Previously, ONDC had reduced its maximum payout to Rs 2.5 crore per player but later revised it to Rs 60 lakh for October, specifically to sustain discounts and promotions during the festive period.

Over the past 18 months, various modern companies, including Paytm, Ola, PhonePe, Meesho, Magicpin, and Shiprocket, have joined ONDC to challenge the dominance of major e-commerce players like Amazon and Flipkart. Recently, Zoho introduced a seller-side platform on ONDC to enhance seller engagement. Additionally, ONDC is set to launch its buyer app, ‘DigiHaat,’ under the subsidiary ‘Nirmit Bharat,’ focusing on products from small businesses, artisans, and self-help groups, which is expected to influence transaction volumes further.

The eCommerce sector has become a powerful enabler for MSMEs, offering a digital platform that significantly broadens their market reach. Traditionally, MSMEs struggled to access a larger audience due to various limitations. However, the advent of digital marketplaces has removed many of these obstacles, and ONDC takes this a step further by eliminating platform dependency. This allows MSMEs to showcase their products across multiple buyer applications, greatly enhancing their visibility and market presence.

Also read How ONDC is changing the ecommerce game in India?

This shift is anticipated to drive eCommerce penetration in India to 25% within the next two years, potentially reaching an impressive 900 million buyers. Moreover, ONDC is expected to facilitate the onboarding of 1.2 million sellers, contributing to a projected gross merchandise value of $48 billion. This underscores ONDC's significant role in transforming the Indian economy by empowering small businesses and expanding the digital commerce ecosystem.

A key feature of this collaboration is the democratization of information and technology. eCommerce platforms have evolved beyond mere transactional portals to become rich knowledge hubs, offering MSMEs access to critical insights, emerging trends, and market intelligence. ONDC enhances this by implementing open network protocols, which promote the unrestricted flow of data. This approach ensures that all participants, regardless of size, have equal access to essential information.

By fostering this level playing field, ONDC empowers MSMEs to make well-informed decisions, refine their online strategies, and effectively compete in the rapidly changing digital marketplace. This not only strengthens their market presence but also enhances their ability to thrive in an increasingly competitive environment.