ONDC Startup India (Complete Guide)

To compete with the leading global companies Amazon and Walmart in their quickly expanding e-commerce business, the Indian government introduced its ondc startup india scheme (Open Network for Digital Commerce) in April.

As of late, industry titans, including Flipkart, Reliance Retail, and Amazon, want to join the ambitious Open Network for Digital Commerce e-commerce network (ONDC). The Economic Times reports that small and medium-sized enterprises and kiranas are doing well in Bengaluru and four other cities are already a part of a trial programme.

What is ONDC?

The Department for Promotion of Industry and Internal Trade of the Government of India founded the private, nonprofit organization Open Network for Digital Commerce to create open networks for e-commerce. In April 2022, it was launched. It is a network of several large and small e-commerce enterprises that intend to end Amazon and Flipkart’s dominance in India.

Thanks to this open network, any network-enabled app can identify and interact with local commerce across significant categories, including a supermarket, delivery service, hotel booking, travel reservations, and more. 

How does it work?

By assisting micro, small, and medium firms and independent sellers to join online marketplaces, the project plans to expand opportunities and break up digital monopolies. Taking initiative is the responsibility of the Department for Industry and Internal Trade, which is part of the Ministry of Commerce and Industry.

Large companies like Flipkart and Amazon have demonstrated a willingness to back the initiative. This will undermine their monopoly and enable them to source goods from the ONDC’s seller side.

This will allow platforms with sizable business-to-business verticals to access the vendor side of the ONDC network to offer items and tap into new consumers, as per the current information.

ONDC functionality

Five Indian cities—Bengaluru, New Delhi, Coimbatore, Bhopal, and Shillong—are already participating in the ONDC’s trial programme. By August, it aims to reach about 100 cities and grow further in the present five cities. Only five sellers and a few buyers are currently participating in the program’s beta testing phase.

ONDC transaction targets to boost competition

In a nation of more than 1.35 billion people, ONDC aims to increase e-commerce reach to 25% of consumer purchases in India during the next two years from the current 8%.

Within the next five years, it hopes to sign up 900 million buyers and target 1.2 million merchants on the shared network, with a revenue growth worth 48 billion dollars. If ONDC successfully meets its goal, Amazon and Flipkart will lose their influence over more than 60% of India’s e-commerce sector.

According to the GOI, present platforms operate in silos, are strictly regulated, and exclude smaller companies, but with ONDC, the number of start-ups will rise. With apps in Indian languages, the emphasis would be on small business owners and rural consumers. This will all encourage healthy competition.

Officials from ONDC connect the network to a market with 1000 gates rather than just 2, limiting the possibility that some sellers will receive special treatment. On the ONDC, consumers can evaluate the quality of the services provided by the providers.

Why is ONDC introduced?

The ONDC will assist in reducing the monopoly of large corporations and expanding the market for small business owners. Additionally, it will assist in increasing the number of buyers’ access to all of the network’s businesses. This manner of strategy will be helpful to both current as well as potential customers.

According to the government, ONDC will aid in putting a stop to predatory pricing for high-margin, high-value goods.

What is open network for digital commerce apps?

The Open Network for Digital Commerce (ONDC) Merchant App is software that enables merchants to list, advertise and sell their products to millions of customers across India. Many small businesses, D2C sellers, merchants, individuals, etc. can register in open networks and use the seller app to grow their activities digitally. 

Many e-commerce solution providers are making their seller apps available to merchants who want to join ONDC.

ONDC’s top 5 seller apps are:

• ONDC Mystore Seller App
• App eSamudaay
• GOFRUGAL Technologies’ selling app and ERP
• SellerApp’s Growth Falcons app for F&B vendors

What is the main aim of Project ONDC?

The primary goal of the ONDC project is to prevent “digital monopolies”.

To promote open networks created using open-source technology, ONDC uses open network protocols and open specifications independent of any particular platform.

How do I register on ONDC?

It’s as easy to register as an ONDC seller as it is to shop online. Since the seller is the focus of ONDC, the registration process is pretty straightforward. The requirements for seller registration are as follows:

• Getting started with a powerful seller platform
• GSTIN for your company
• contact information for the company’s authorized staff
• Information about Bank Accounts (To complete payouts from the buyer app)
• Onboarding Contract

Gofrugal remains the only ERP with ONDC integration as of August 2022. But in the future, as the platform grows, there will be various ERPs to register with, and the applicant will be free to choose any of them.

Does ONDC use Blockchain?

A blockchain-based protocol, the Open Network for Digital Commerce (ONDC) aspires to establish a reliable and effective worldwide market for digital trade. The platform aims to use the decentralization and immutability that are intrinsic benefits of blockchain technology.

Who has joined ONDC now?

Ekart, the logistics division of Flipkart, and Dunzo, sponsored by Reliance Retail, have partnered with ONDC to provide logistical services. According to the source, Flipkart and Walmart-owned PhonePe will join the network and is undergoing extensive integration. 

Several lenders are talking with the ONDC to build up buyer platforms, including the State Bank of India, Axis Bank, PNB, ICICI, HDFC, Kotak, and IDFC First. With the use of these, banks may promote the usage of their credit cards, loans, and other services.

How to get dunzo seller registration?

• Download the Dunzo app from the Google Play store.
• Sign up with your mobile number and email address.
• Enter your KYC details and other relevant information.
• Enter your restaurant registration number and details.
• Please enter the item you would like to deliver.
•  Finally, add photos of dishes and other important elements that add credibility and safety to your restaurant. 

FAQ

Who is the owner of ONDC?

The Department for Industry and Internal Trade, which is part of the Ministry of Commerce and Industry, is responsible for taking the initiative ONDC.

Who is building ONDC?

The co-founder of software giant Infosys Ltd., Nandan Nilekani, led The Open Network for Digital Commerce (ONDC) project to equalize the market for small firms.

Is ONDC started in India?

To promote online commerce affordably and provide equal growth opportunities, the government of India created ONDC, or the Open Network for Digital Commerce.

Is ONDC government or private?

The Indian government launched ONDC as a digital platform to support the advancement of small businesses. It is a private company assisted by the government to create a digital platform.

Which bank has the largest stake in ONDC?

The largest bank in the nation, State Bank of India (SBI), paid ten crores to purchase a 7.84% equity investment in the open-source e-commerce platform Open Network for Digital Commerce (ONDC).

Conclusion

To democratize e-commerce in India and provide options to proprietary e-commerce sites, ONDC was established as a private, nonprofit (Section-8) corporation on December 31, 2021. An incubator for ONDC is the Department for Promotion of Industry and Internal Trade (DPIIT) of the Quality Council of India.

A nine-member advisory board, which included RS Sharma, CEO of the National Health Authority, and Nandan Nilekani from Infosys, advised the government on the steps needed to develop and accelerate the implementation of ONDC.

The programme required removing the dominance of massive platforms like Flipkart and Amazon, which the government has accused of using unlawful monopoly practices.

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