The Ministry for Micro, Small and Medium Enterprises (MSME) has partnered with the Open Network for Digital Commerce (ONDC) to launch the MSME Trade Enablement and Marketing (TEAM) initiative, with a budget allocation of INR 277.35 crore.
This ambitious programme aims to digitally empower more than 5 lakh MSMEs, with a particular focus on women-led businesses, by integrating them into the ONDC network.
Digital Empowerment for MSMEs
The TEAM initiative will provide small businesses access to a variety of digital tools, including online storefronts, integrated payment systems, and robust logistics support.
This will not only reduce operational barriers for MSMEs but also help them expand their reach to a wider customer base.
Financial assistance will also be offered to seller network participants to streamline their onboarding process on digital platforms, the ministry said in a statement.
T Koshy, Managing Director and CEO of ONDC, remarked, “The MSME TEAM Initiative is more than just a programme – it’s an opportunity to empower small businesses with the tools and resources they need to thrive in the digital age.”
Boosting MSMEs in the Digital Economy
The TEAM initiative aligns with the government’s broader vision of strengthening MSMEs through digital transformation.
It follows a series of significant developments in the MSME ecosystem, such as Mumbai-based NBFC Infinity Fincorp Solutions’ recent Series A funding round of $35 million (approximately INR 300 crore), led by Jungle Ventures, aimed at expanding MSME lending.
In the ONDC ecosystem, over 7 lakh sellers and service providers have already been onboarded as of early January, with ONDC reporting 14.5 million transactions in November 2024.
Starting January 1, ONDC implemented a transaction fee structure of INR 1.5 for every transaction above INR 250 to ensure sustainable operations as the network scales.
Supporting Women-Led Businesses
A key focus of the TEAM initiative is to uplift women entrepreneurs and businesses by offering them a level playing field in the competitive digital commerce landscape.
This move is expected to foster greater inclusivity and provide equal opportunities for women-led MSMEs to thrive.
