Months after enabling consumer-to-merchant transactions using the open network protocol and extending its reach to the mobility sector, the Indian government-backed open e-commerce network has now been expanded to support business-to-business (B2B) transactions.
On its interoperable network, the Open Network for Digital Commerce, or ONDC, started accepting B2B transactions on Monday. Rapidor, a platform for business automation with its headquarters in Kerala, and SignCatch, a SaaS payments firm with its headquarters in New Delhi, have joined the network to begin B2B exchanges.
Both businesses carried out roughly 160 cross-transactions over the open network during the testing phase that started last month. The ONDC team claimed to have additional firms in the works for its B2B expansion, including Noida-based Spice Money, a rural fintech company.
“Even if you assist businesses in digitising, how can we assist them in reaching the entire market? This is one of the major issues in digital commerce. Each of them must have its own purchasing application or calling site. In order to make all of these things a reality, we are currently working to establish a standard, stated T Koshy, CEO and managing director of ONDC, at the event.
In order to “democratise” digital commerce in India, the Indian government created ONDC as a nonprofit organisation in 2021. This was done in an effort to build on the success of its interoperable mobile payments platform UPI, which assisted Google and Walmart in fending off competition from closed-ecosystem wallets. The e-commerce network began beta testing in September of last year after beginning alpha testing in April.
According to Koshy, the open e-commerce network processed 50,000 delivery and purchases of groceries per day. In the upcoming few months, it plans to handle 100,000 daily transactions.
The on-demand auto rickshaw booking app Namma Yatri was made available on the network by ONDC in March, marking the company’s entry into the mobility market. To further develop the network, it is also open to working with Uber and Ola.
“B2B has its own nuances because the buyers are different and their priorities are different,” said Koshy. “A pure contractual relationship between the buyer and seller Everything is different, and there will be some negotiation.”
The Indian government is fairly enthusiastic about making ONDC a mainstream system for digital commerce in the country. The government has recently threatened e-commerce companies by stating it would have to “cut off those who are left behind” and asking them to join the project before it is “too late to join the train.”
