ONDC
How ONDC is Rewiring India’s Digital Marketplace
In this episode of Masters of Change, Abey Zachariah from the network expansion team of Open Network for Digital Commerce shares how ONDC is reshaping the rules of e-commerce in India. From breaking platform monopolies to enabling interoperability across buyer and seller apps, he explains how open networks can unlock the next phase of digital commerce growth.
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1. Introduction
Where did the initial idea for ONDC come from?
Abey Zachariah: If you look at the evolution of the internet, the first wave was digitisation of services like travel ticketing. The next phase brought physical goods online, but largely through a few dominant platforms.
ONDC was conceptualised to address this concentration. Under the leadership of Anil Agarwal, the Department for Promotion of Industry and Internal Trade (DPIIT) collaborated with the Beckn Protocol to build an open network.
ONDC is a Section 8 not-for-profit initiative, backed by financial institutions, with a clear objective: to democratise digital commerce.
2. How ONDC Differs from Traditional E-commerce
What makes ONDC fundamentally different from existing e-commerce platforms?
Abey Zachariah: ONDC is an open and inclusive network. It allows both existing and new players to participate without being locked into a single platform.
Traditional platforms often control discovery and commissions. ONDC changes that by enabling sellers to operate on their own terms. A local retailer, who may not get visibility on large platforms, can now be discovered across multiple buyer apps.
At its core, ONDC is built on two principles: unbundling and interoperability. A seller integrated once can be discovered across all buyer applications on the network.
3. Evolution and Current Scope
How has the journey evolved so far?
Abey Zachariah: The first transaction on ONDC took place in late 2022. Initially, the focus was on validating the protocol with a single buyer and seller.
Since then, we’ve moved from version 1.1 to a more robust 1.2 and have seen strong participation from players like Paytm, Pincode, Magicpin, Ola, and NoBrokerHood.
What is the broader scope beyond retail?
Abey Zachariah: Currently, ONDC operates across retail categories like grocery, food, and fashion, as well as mobility services such as taxis and public transport.
We’ve also enabled early use cases in financial services and international trade. Over time, these domains will converge. For example, a retail purchase could be seamlessly linked with credit, or B2B and B2C transactions could work together within the same ecosystem.
4. Consumer Awareness and Trust
Many consumers are still unfamiliar with ONDC. Who will drive awareness?
Abey Zachariah: ONDC operates more as a trust layer than a consumer-facing brand. Buyer apps carry the responsibility of driving awareness and traffic.
We’ve also introduced innovations like ONDC-enabled QR codes, allowing consumers to access the network directly through supported apps.
How do you build trust in such a distributed system?
Abey Zachariah: Trust is built through experience. Many sellers on ONDC are already well-known retail chains.
We’ve also introduced systems like IGM, an API-driven grievance redressal mechanism, and are working on Confidex, a blockchain-based rating system. Over time, platform-level controls and consumer feedback will naturally filter out poor actors.
5. Success Stories and Challenges
Can you share any early success stories?
Abey Zachariah: One key success has been onboarding traditional retailers through large brands and network participants.
In one case, a spice brand ran a campaign and received over 10,000 orders within four days. That demonstrates the potential scale of the network.
What were the biggest challenges?
Abey Zachariah: Like any marketplace, we faced the classic “chicken and egg” problem in the early stages.
Logistics was initially a constraint, but hyperlocal delivery has improved significantly. Another challenge was explaining the concept of unbundling, which is new and requires a mindset shift.
Today, the conversation has moved from scepticism to participation.
6. The Future Roadmap
What does the road ahead look like?
Abey Zachariah: Currently, ONDC has a presence in over 550 cities, with more than 3 lakh sellers and millions of listed products.
Over the next few years, we expect retail adoption to accelerate and multimodal mobility to become more seamless, allowing consumers to plan entire journeys across services in one flow.
Any final thoughts for brands?
Abey Zachariah: The infrastructure is ready. Brands that participate early will have a clear advantage as the network scales.