Microsoft in ONDC platform

August 12, 2022

Recently, Microsoft joined the Open Network for Digital Commerce (ONDC) of the government, with the objective of introducing social e-commerce in Indian market.

Significance of this move include;

Microsoft is the first big technology company to tie up with government for ONDC platform.
As a part of social e-commerce, Microsoft has also planned to launch shopping app in India.
This app will allow buyers to discover best price offered by sellers and retailers. This app will be made available on ONDC platform.
It will enable the buyers and sellers to connect without depending on any e-commerce solution.

Open Network for Digital Commerce:

Open Network for Digital Commerce initiative was launched with the aim of promoting open networks for all aspects of exchange of goods and services across digital or electronic networks. It is based on open-sourced methodology. This network is being developed to counter the duopoly of Amazon and Flipkart in Indian e-commerce market. This platform was launched by Department for Promotion of Industry and Internal Trade in May 2022.

Companies onboard ONDC:

Currently, companies like Dunzo for Business, Kotak, Paytm, Digit, Loadshare, PhonePe and Go Frugal have joined the ONDC. In August 2022, Snapdeal is going to launch 3 main product categories on the platform. Airtel, Axis Bank and HDFC Bank have also started the integration with this network. Flipkart and Amazon are also considering to join the ONDC network.

Working Mechanism of ONDC:

The ONDC platform will act as a bridge between buyers and the sellers. Currently, Paytm is the host for buyer side interface. On the other hand, GoFrugal etc are hosting the seller side interface. When a buyer will search item on Paytm app, it will be connected to ONDC platform. ONDC platform will then connect the seller side interfaces, where all the companies will be listed to purchase the item.

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