The Open Network for Digital Commerce (ONDC), the government-backed ecommerce initiative, has crossed the 200 million transactions milestone, marking a significant achievement in its journey towards democratizing online commerce in India.
The network, often compared to the Unified Payments Interface (UPI) in terms of its transformative potential, reached 100 million transactions in 20 months (January 2023 – August 2024).
However, its growth has accelerated significantly, with the next 100 million transactions achieved in just six months.
Aiming to Democratize Ecommerce
ONDC was launched with the objective of creating an open, decentralized network where small merchants could participate and compete with established ecommerce giants like Amazon and Flipkart.
Unlike traditional platforms that own and operate their own marketplaces, ONDC acts as an intermediary, allowing buyers and sellers from various platforms to transact through standardized APIs.
The network currently has a presence in multiple segments, including food delivery, consumer goods, financial services, and mobility.
Participants in ONDC include major Indian brands such as Paytm, Ola, BharatPe, boAt, and Uber, although Amazon and Flipkart have yet to join the network.
However, Flipkart’s logistics arm, eKart, is part of ONDC’s ecosystem.
Growth Challenges Remain
Despite the 200 million transaction milestone, ONDC’s growth trajectory still lags behind established ecommerce giants.
A 2024 IEEE report highlighted that while ONDC has expanded its presence, it is yet to match the scale of platforms like Amazon and Flipkart, which collectively process over 2 million transactions per day.
In contrast, ONDC currently handles an estimated 287,000 daily transactions.
Experts cite several factors as key obstacles to ONDC’s rapid adoption.
These include limited seller awareness, challenges in acquiring new participants, the cost of adoption, competition from well-entrenched players, and scalability constraints.
The absence of a dedicated ONDC app has also been identified as a potential barrier to consumer engagement.
The Road Ahead
While ONDC’s growth has been steady, further acceleration is needed for it to achieve its ambitious goal of transforming India’s ecommerce landscape.
With continued government support and growing merchant participation, the network may yet realize its vision of creating an open and inclusive digital commerce ecosystem.
For now, the 200 million milestone marks an important step forward, but the journey ahead remains challenging as ONDC works to scale its operations and establish itself as a mainstream alternative to dominant ecommerce platforms.
