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ONDC Records Over 7.1 Million Orders Since Launch

CIO Insider Team | Tuesday, 5 March, 2024
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Backed by the government, Open Network for Digital Commerce (ONDC) recorded growth of orders of over 7.1 million last month since its date of launch, January last year.

Compared to January, the interoperable network witnessed 6.5 million transactions and in the following month, it saw daily average transaction count rise by 23 percent exceeding 258,000.

The inclusion of Namma Yatri, a ride-hailing platform, also helped in the 3.8 million out of the 7.5 million transactions. Additionally, retail purchases covered up the remaining 3.7 million

At present a far smaller portion of total monthly transactions are made up by retail purchases in comparison to their earlier months which were 5 to 10 percent, added with mobility sections which weighed about 90-95 percent transactions.

Previously, the interoperable network worked upon setting up a framework to take in buyers, sellers, and platforms last year and the scalability of this is looking to be settled this year.

Furthermore, the interoperable network plans to close a monthly run rate of about eight million transactions towards the end of this financial year. The target seems permissible given the growth rate’s continuity.

In the upcoming years, the government wants to use ONDC to raise the country's e-commerce penetration rate to 25 percent and attain a gross merchandise value of $48 billion.

Since its popularity, several new and upcoming businesses have taken interest in ONDC which includes famous platforms like Paytm, Ola, PhonePe, Meesho, Magicpin, and Shiprocket. These platforms look to loosen the grip that select few companies like Amazon, Flipkart, Zomato and Swiggy have over the nation’s online retail market.

588 "countable cities," or the districts or cities with more than 100 orders each month over the previous three months, are where ONDC operates. This accounts for almost 70% of Indian cities. Over 800 Indian towns have seen transaction fulfillment through the platform.

Seven cities—Bengaluru, Mysuru, Kolkata, Hyderabad, Delhi, Chennai, and Kochi—now provide ride-hailing services through ONDC. The introduction of metro ticket buying on ONDC in Chennai is seen as a significant milestone in the network's multimodal mobility strategy.

In the upcoming years, the government wants to use ONDC to raise the country's e-commerce penetration rate to 25 percent and attain a gross merchandise value of $48 billion.

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