The Indian government is expanding its open e-commerce network, ONDC to facilitate business-to-business (B2B) transactions, a move that could drive the country to the forefront of the digital revolution.
The Open Network for Digital Commerce, or ONDC for short, is a platform that will disrupt the traditional norms of e-commerce and transform the way digital commerce operates.
According to a recent report by consulting firm McKinsey, the government-backed e-commerce project has the potential to increase India's digital consumption by a massive 5X to $340 billion by 2030. After successfully enabling transactions between consumers and merchants (B2C), ONDC is now ready to empower B2B interactions.
Notably, since its B2C launch last September, approximately 50,000 daily transactions have taken place on the ONDC platform, primarily in the domain of groceries and food deliveries. It is setting its sights on managing a staggering 100,000 daily transactions in the near future.
An initiative by India's Ministry of Commerce and Industry, ONDC is designed to create new opportunities and support micro, small, and medium enterprises, as well as small traders, in various segments like mobility, grocery, food delivery, hotel booking, and travel in getting online and levelling the playing field with established e-commerce players.
The expansion means that beyond just business-to-consumer (B2C) transactions in segments like food, groceries, and mobility, ONDC will now be enabling seamless transactions between businesses - business-to-business (B2B) transactions through a standardized network
With the size of India's B2B market estimated to be about $20 billion in 2023 and expected to reach $60 billion by 2025, according to Statista, the ONDC platform promises to revolutionize the way B2B transactions are conducted in India, offering a reliable, efficient, and digitally-enabled ecosystem for businesses to thrive in the growing market.