ONDC witnesses the participation of small enterprises: T Koshy

New Delhi: From farmer producer organizations to the silk weavers of Kanjeevaram to self-help groups like Kudumbashree in Kerala, the government-led Open Digital Commerce Network (ONDC) is enjoying diverse participation from small businesses across India, said T Koshy, MD and CEO.

Koshy said the idea of ​​ONDC, an initiative of the Department for the Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce, “came up about three years ago when the country was grappling with the pandemic.”

The ONDC chief said it was registered as a company in 2021 and by the end of 2022 it was available in some areas of Bengaluru.

“Over the last year and a half, we have managed to gain significant popularity. From just 1,000 transactions 15 months ago, we completed 9 million transactions in May. From 500 traders in January 2023, we now have five and a half lakh traders. About 85 per cent of them are small and micro enterprises, including taxi drivers and artisans,” said the ONDC MD and CEO.

The network was created to revolutionize digital commerce and give greater impetus to e-commerce retail penetration in India.

Koshy said the response to ONDC was “pretty decent” in tier II and III cities.

“About 40-45 percent of transactions are mobile, which is very hyper-local in nature and is available in 8-9 cities. About 65 per cent of daily transactions take place in tier II and III cities,” Koshy said.