The Open Network for Digital Commerce (ONDC) has witnessed a remarkable surge in monthly retail purchases, growing sixfold in the last six months to reach a staggering 3.6 million transactions in March.
This significant increase, compared to over 600,000 purchases in September last year, reflects the growing popularity and widespread adoption of the platform, according to sources familiar with the developments.
According to various reports, several factors have contributed to this surge in retail purchases, including substantial discounts for users, incentive schemes for sellers, and the entry of prominent players such as Boat, Domino’s, and McDonald’s into the network. Additionally, the expansion of ONDC to more cities has further fueled its growth trajectory.
Meanwhile, the total number of transactions on the network in March soared to 7.7 million, with ride-hailing bookings on the Namma Yatri app accounting for 4.1 million of these transactions. In contrast to retail purchases, monthly ride-hailing has experienced a more modest growth rate of 1.5 times over the last six months, increasing from 2.7 million in September.
ONDC however has not shared specifics regarding the transaction numbers.
The dominance of retail purchases in the total monthly transactions marks a significant shift from early 2023 when it accounted for only 5-10 percent, with the mobility category dominating the majority of transactions.
In February, ONDC introduced a fresh incentive structure aimed at rewarding e-commerce platforms based not only on retail purchase volumes but also on the rate of order growth. This initiative reflects ONDC’s ambitious goal of increasing daily transactions by tenfold over the next year.
With over 370,000 sellers and service providers now part of the network, ranging from top brands to farmers and taxi drivers, ONDC continues to expand its reach across the country. Operational in 588 “countable cities” and fulfilling transactions in over 800 cities in India, the platform has made significant strides in democratising online commerce.
Furthermore, ONDC’s expansion into new offerings, including ride-hailing services in seven cities and the testing of transactions for personal loans, demonstrates its commitment to diversifying its offerings and enhancing user experience. The platform is also laying the groundwork for broader financial services integration, encompassing credit, insurance, and wealth management.
With ambitious targets set by the government to increase e-commerce penetration to 25 percent and achieve a gross merchandise value of USD 48 billion, ONDC’s rapid growth trajectory and expanding ecosystem are poised to play a pivotal role in shaping the future of digital commerce in India.
