According to a report published by Equirius Securities, the Open Network for Digital Commerce achieved a new milestone in June: 10 million monthly transactions. The report noted that ONDC’s non-mobility segment transactions were pegged at 6.1 million and have been rapidly growing by over 46 per cent quarter-on-quarter.
The network had recently said that during the recently concluded T20 World Cup finals, when India emerged victorious, the network saw transactions of 374,000 orders in a single day.
“ONDC has been adding one million transactions per month in the past two months, showcasing strong growth. The bulk of this incremental growth has been supported by the retail segment, with non-mobility orders crossing 6 million transactions in Jun 2024 compared with 3.6 million in March 2024. The mobility transactions have declined to 3.9 million from 4.1 million in Mar’24,” the report by Equirius Securities (India Equity Research, BFSI) added.
Credit solutions
It was also noted that ONDC has done pilots for consumer loans and will also focus on the B2B loan segment. “ONDC is poised to integrate leading banks such as HDFC Bank, IDFC First Bank, and Karnataka Bank, along with fintech firms like Fibe, to extend credit services to underserved regions.This strategic integration will enable participating banks to offer unsecured personal loans and GST-based invoice loans to small merchants and retailers in financially underserved areas across India. In addition to consumer loans, ONDC plans to introduce B2B credit services, offering large loans ranging from ₹10-15 million,” the report added.
The network is also looking into onboarding partners to offer small-ticket, short-tenure loans to farmers and merchants. ONDC is also expanding into insurance and is expected to expand into the mutual funds space too, it added.
User fee
Referring to a recent blog on ONDC, the report further noted that the network has indicated that it will begin levying a small user charge on each transaction sometime during FY25. It has also been cutting order volume-linked financial incentives for network participants. “We consequently believe there is a high likelihood of various stakeholders at ONDC earning revenues for orders starting from second half of FY25,” the report added.