From Aadhar to UPI, India’s digital transformation journey has been rapid, and ONDC stands as the latest initiative to tap into the country’s technological and entrepreneurial potential. With partnerships with leading companies like Google Cloud, ONDC aims to create a comprehensive and navigable platform that benefits both small entrepreneurs and large e-commerce players.
“ONDC could be India’s next unicorn catalyst,” says Susmit Patodia, Capital Director at Antler India, a Bengaluru-based venture capital firm. Just like start-ups built on and innovated using the UPI (Unified Payments Interface) protocol built by the government - think Google Pay, PhonePe and the numerous other start-ups that used the UPI rails to build atop - the opportunity for start-ups to build on and innovate for ONDC is massive, he says.
According to some estimates, ONDC could add $60 billion to $80 billion to India’s economy by 2030. That’s because unbundling services will allow niche players to spring up and build specialized apps.
Think of selling furniture online, for example. Items can be clunky to transport from seller to buyer. Shipping a chair is different from shipping large wardrobes or glass table tops. “That’s why penetration of furniture e-commerce is extremely low,” says Patodia. ONDC can encourage start-ups to build and thrive in such niche areas.
Moreover, as data on buyer behaviour is made available to sellers through ONDC, unlike in the case of Amazon, Flipkart or Swiggy, which hold on to customer data, sellers will be able to better cater to their customers.
This story is from the January, 2024 edition of Beyond Market.
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This story is from the January, 2024 edition of Beyond Market.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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