Zoho, Uber, Paytm and BSE Technologies back ONDC with Rs 220 crore as the government-backed network prepares to raise another Rs 210 crore under its ONDC 2.0 strategy
The Open Network for Digital Commerce (ONDC) has raised Rs 220 crore from software company Zoho, ride-hailing platform Uber, fintech major Paytm and BSE Technologies, as the government-backed digital commerce network prepares for the next phase of its expansion.
Regulatory filings with the Registrar of Companies (RoC) show that Zoho emerged as the largest investor in the round with a Rs 70 crore infusion. Uber and Paytm invested Rs 60 crore each, while BSE Technologies, the technology arm of BSE, contributed Rs 30 crore.
The latest funding round comes as ONDC seeks to scale its operations and strengthen its position as India’s open digital commerce infrastructure, spanning retail, logistics, mobility, tourism and financial services.
ONDC Eyes Next Growth Phase
The organisation is now looking to raise an additional Rs 210 crore from a mix of existing shareholders and new strategic investors under its ONDC 2.0 roadmap.
“ONDC is seeking to raise funds to transition the network from a functional proof-of-concept to a value-creating national digital commerce infrastructure under its ONDC 2.0 strategy,” the organisation said.
“This fundraise is split between existing investors and new strategic partners to drive several critical growth pillars, including the implementation of AI and agentic commerce to lower participation barriers, and the development of Digital Public Infrastructure (DPI) initiatives like DigiCatalog — (a) National Infrastructure for Cataloguing.”
The planned investments will support ONDC’s efforts to move beyond network expansion and focus on technology upgrades, artificial intelligence-led commerce solutions and infrastructure development.
Strategic Investors Join In
The latest round has attracted a mix of technology, mobility and financial services players, underscoring growing confidence in ONDC’s open-network model.
Paytm, which announced its Rs 60 crore investment separately on Tuesday, said the move reflects its commitment to supporting India’s digital commerce infrastructure. The company is already integrated with ONDC through metro ticketing services on its platform.
“India’s next wave of digital commerce growth will be driven by networks that provide equal opportunities for all businesses. Our investment in ONDC reflects Paytm’s commitment to supporting this journey and expanding access to commerce and financial services for merchants, businesses, and consumers across the country,” a Paytm spokesperson said.
Paytm has been among the early supporters of ONDC, which was created to build an interoperable digital commerce ecosystem and reduce dependence on closed-platform models dominated by large ecommerce marketplaces.
Meanwhile, Uber said its investment builds on its existing partnership with ONDC and will support expansion in mobility and logistics services.
“As part of this investment, Uber will work closely with ONDC to expand access to multimodal transportation, including public transit integrations, while also strengthening its logistics capabilities to better serve businesses and independent earners on the network,” the company said.
Last month, Chennai-headquartered Zoho said its participation in the funding round aligns with its efforts to make technology more accessible to businesses, particularly micro, small and medium enterprises (MSMEs).
Mobility Drives Adoption
ONDC’s mobility segment has emerged as one of the network’s fastest-growing categories. Ride-hailing platform Namma Yatri already operates on the network, while Uber currently offers metro ticket bookings through ONDC.
Metro ticketing services on the network are also available through platforms such as Rapido and WhatsApp, as well as payment applications including Paytm, PhonePe and Google Pay.
Earlier this week, ONDC said it facilitates more than 300,000 metro and bus ticket bookings daily across 21 cities. The network has also gained traction across retail and logistics services, reflecting broader adoption of the open-commerce model.
Expanding Digital Commerce Infrastructure
ONDC said the platform crossed 450 million cumulative transactions in May across sectors including retail, logistics, mobility, public transport, tourism and financial services.
The network’s existing investors include State Bank of India, ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, the National Stock Exchange and CSC e-Governance Services. ONDC was established by the Quality Council of India and Protean eGov Technologies.
The latest fundraise highlights increasing private-sector support for ONDC as it seeks to evolve from a proof-of-concept initiative into a large-scale digital public infrastructure platform capable of reshaping how commerce is conducted in India.
