ONDC Rides the Festive Wave to Record 14 Million Transactions

India's Open Network for Digital Commerce (ONDC) has announced a significant milestone, achieving 14 million transactions in October, a 7.6% increase from the previous month and a staggering 200% surge year-on-year. This impressive growth underscores the platform's rising prominence in the Indian e-commerce landscape, particularly during the crucial festive season.

Festive Cheer Fuels ONDC's Growth

The surge in transactions coincides with India's festive season, a period marked by increased consumer spending and online shopping. ONDC capitalized on this trend by strategically incentivizing its network participants, albeit with a revised approach. In September, ONDC slashed the maximum limit of incentives granted to its network participants by 84% to INR 40 Lakh from INR 2.5 Cr. This move aimed to control the dominance of a few large players and foster a more level playing field for smaller businesses on the network.

Mobility and Non-Mobility Segments Drive Growth

ONDC's success can be attributed to strong performance across both its mobility and non-mobility segments. The mobility segment, which includes ride-hailing and other transportation services, recorded 5.5 million transactions. This highlights the growing adoption of ONDC for everyday commuting and travel needs.

The non-mobility segment, encompassing diverse categories such as food and beverage, groceries, and fashion, witnessed 8.4 million transactions. Within this segment, the food and beverage category emerged as a leader with 2 million transactions, followed by groceries with 1 million. The fashion segment also demonstrated remarkable growth, recording 11 million transactions, up from 9 million in September.

ONDC's Expanding Ecosystem

ONDC's impressive growth is a testament to its expanding ecosystem and strategic initiatives. The platform has been actively onboarding new sellers and service providers, with over 6.38 lakh participants operating in more than 609 cities as of August. This extensive network ensures wider consumer choice and accessibility to a diverse range of products and services.

Furthermore, ONDC has been forging partnerships with banks and fintech companies to integrate financial services into its platform. This will enable users to access loans, make mutual fund transactions, and enjoy other financial benefits, further enhancing the platform's value proposition.

Key Takeaways

• ONDC recorded 14 million transactions in October, a 7.6% month-on-month increase and a 200% year-on-year surge.
• The festive season and strategic incentives contributed to this growth.
• Both mobility and non-mobility segments witnessed strong performance.
• ONDC's expanding network and integration of financial services are driving its success.

ONDC's impressive performance in October signals its growing influence in the Indian e-commerce market. As the platform continues to expand its network, integrate new features, and foster a more inclusive ecosystem, it is poised to become a major force in democratizing digital commerce in India. With its open protocol and focus on empowering small businesses, ONDC has the potential to revolutionize how Indians buy and sell goods and services online.

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