ONDC set to launch B2B testing | The Financial Express

ONDC set to launch B2B testing

Persons familiar with the plans said the B2B network participants are in the process of integrating with the system.

ONDC set to launch B2B testing
An analysis by ICICI Securities notes the addressable market for B2B e-commerce is poised for a compounded annual growth rate of 55.8% over FY23-FY25. (Photo: Pixabay)

The Open Network for Digital Commerce (ONDC) will be launching its B2B (business-to-business) testing phase next month starting with the groceries vertical. Persons familiar with the plans said the B2B network participants are in the process of integrating with the system.

An analysis by ICICI Securities notes the addressable market for B2B e-commerce is poised for a compounded annual growth rate of 55.8% over FY23-FY25. “Digital penetration of the B2B space is expected to increase to 2.3% in FY25 from 1.2% in FY23,” analysts at the brokerage observed. The resulting revenue opportunity is likely to increase to $16.5 billion from $6.8 billion during the same period.

Also Read: ONDC, AAN to drive future growth, jobs: Nandan Nilekani

Meanwhile, a rollout of ONDC’s beta phase for Delhi is expected in early December, two months after the launch in Bengaluru on September 30 across 16 PIN codes.

With several logistics players now on board and able to deliver products inter-city, more verticals are to be introduced, including electronics, household items, beauty and personal care, fashion, home decor and also mobility in Kerala. The mobility service will be launched by the taxi association in the state.

Currently, the verticals for which services are available include groceries and food.

Players in the process of integrating with the network include Hindustan Unilever, IndiaPost, Bharti Airtel, Nivea and the Uttar Pradesh government. Moreover, logistics players including Grab, owned by Reliance Industries, and Delhivery are also in the process of joining the network. “PhonePe is in an advanced stage of integration,” the people quoted above said, adding that Paytm is already on the platform.

Also Read: Shiprocket goes live on government’s e-commerce platform ONDC as its first inter-city logistics provider

On an average, 5-10 prospective participants are signing up every week, persons working on the initiative said. In all, 500 network partners have signed up so far, of which 250 are in various stages of technical integration. The remaining 250 have started the process of joining the network. “Around 30-40 participants are in the pre-product stage and will go soon,” one of the persons said. As of now, around 21 players have gone live on the network. The number of daily transactions ranges between 50 and 100.

ONDC is a government-backed digital network that will facilitate small merchants and mom-and-pop stores across the country to access customers. The objective is to create an interoperable network for digital commerce similar to the UPI — Unified Payment Interface — network for payments. Though a nascent initiative, its successful and full-scale execution could provide a fillip to the Indian e-retail ecosystem. Among the companies that have signed up are Shiprocket, Ekart, Kotak Mahindra Bank and Snapdeal. NPCI (National Payments Corporation of India) is a shareholder in ONDC together with a host of banks, NSDL, CDSL, NSE, BSE, Nabard and Sidbi.

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First published on: 17-11-2022 at 06:30 IST