CIO Insider

CIOInsider India Magazine

Separator

ONDC Expands to B2B E-Commerce

CIO Insider Team | Tuesday, 6 June, 2023
Separator

Startups SignCatch and Rapidor are powering the buyer side and seller side platforms, respectively, for the government-backed Open Network for Digital Commerce (ONDC)'s launch of business-to-business (B2B) e-commerce.

Months after enabling consumer-to-merchant transactions using the open network protocol and extending its reach to the mobility sector, the Indian government-backed open e-commerce network has now been expanded to support business-to-business (B2B) transactions.

The two companies carried out roughly 160 cross-transactions over the open network during the testing phase that started last month. The ONDC team claimed to have additional firms in the works for its B2B expansion, including Noida-based Spice Money, a rural fintech company.

Micro, small, and medium-sized businesses will be able to use the network to perform B2B transactions thanks to ONDC's latest venture.

The network's foray into B2B ecommerce has coincided with a decline in B2C transactions as a result of ONDC limiting its terms for network partners' incentives to pay discounts for users.

On its new product, ONDC has enabled capabilities like dynamic pricing, bulk order buying, delivery planning, and embedded finance in the form of B2B credit.

While Kochi-based Rapidor is a platform that facilitates B2B trade and transactions in closed loop networks, SignCatch's platform-as-a-service (PaaS) solutions are licensed to brands, distributors, and retailers.

To ‘democratize’ digital commerce in India, the Indian government created ONDC as a nonprofit organization in 2021. This was done in an effort to build on the success of its interoperable mobile payments platform UPI, which assisted Google and Walmart in fending off competition from closed-ecosystem wallets. The e-commerce network began beta testing in September of last year after beginning alpha testing in April.

The ONDC announced a revamped incentive program with limits on discounting last week. The action was taken in the midst of ONDC's intention to eventually phase off discounts and incentives.

ONDC will now start providing services that compete with B2B businesses like Udaan, Amazon Business, IndiaMart, Dealshare, Jumbotail, and others as a result of its entry into the new market. On its new product, ONDC has enabled capabilities like dynamic pricing, bulk order buying, delivery planning, and embedded finance in the form of B2B credit.

Current Issue
Datasoft Computer Services: Pioneering The Future Of Document Management & Techno-logical Solutions