In a significant development, the government-backed open network for digital commerce (ONDC) has announced the expansion of its services to facilitate business-to-business (B2B) transactions. This move is expected to benefit a multitude of small and medium establishments, providing them with access to a broader market for their products. The launch of B2B-enabled transactions marks a pivotal moment for e-commerce, offering businesses the opportunity to thrive online and overcome the obstacles that have hindered their growth.
T Koshy, the Managing Director and CEO of ONDC, expressed his optimism about the new development, stating, “This will open up a lot more possibilities. With the launch of the B2B-enabled open network, we are ushering in a new era of e-commerce where businesses can thrive online, overcoming the challenges that have held them back.”
To facilitate B2B transactions on the ONDC platform, the network has partnered with two technology startups, SignCatch and Rapidor. Together, they have created B2B buyer and seller side platforms that ensure seamless interoperability between buyers and sellers. This collaboration has already resulted in over 160 successful B2B transactions within a short period, showcasing the efficiency and potential of the platform.
The current B2B launch is in its alpha mode, indicating that further enhancements and refinements are expected as ONDC continues to evolve. The ultimate goal is to onboard more than 30-40 lakh (3-4 million) small businesses that currently supply to larger enterprises. This endeavor aims to provide these small businesses with the opportunity to expand their markets and drive their growth trajectory.
Sivasubramanian Ramann, Chairman and Managing Director at Sidbi, expressed his vision for the project, stating, “Our dream is to bring onboard more than 30-40 lakh small businesses which are today supplying to larger businesses and get them to have a chance of expanding their markets.”
The expansion of ONDC into B2B transactions is poised to create a transformative impact on India’s business landscape. Small and medium enterprises often face challenges in reaching a wider audience due to limited resources and market access. By leveraging the ONDC platform, these businesses will be able to transcend their geographical constraints and tap into a vast network of potential buyers and partners.
One of the primary advantages of B2B transactions on ONDC is the elimination of intermediaries, enabling direct interaction between businesses. This will streamline the procurement process, reduce costs, and foster greater transparency in transactions. Additionally, the platform offers secure payment mechanisms and logistics support, further enhancing the ease of doing business for all participants.
The government’s backing of ONDC underscores its commitment to fostering a digital economy and promoting inclusive growth. The platform aligns with the government’s vision of leveraging technology to empower small businesses and promote entrepreneurship across the country. By providing a level playing field and equal opportunities, ONDC aims to democratize commerce and create a vibrant ecosystem where businesses of all sizes can thrive.
As ONDC continues to evolve and expand its services, it is anticipated that the platform will witness a surge in registrations from both buyers and sellers. This will further fuel the growth of B2B transactions, generating economic opportunities and fostering innovation. Moreover, the success of ONDC’s B2B launch will inspire confidence among businesses, encouraging more entrepreneurs to embrace digital commerce and realize its immense potential.
In conclusion, the expansion of ONDC to include B2B transactions marks a significant milestone in India’s digital commerce landscape. By providing small and medium enterprises with access to a broader market, ONDC empowers them to overcome existing challenges and unlock their growth potential. With the support of technology startups SignCatch and Rapidor, the ONDC platform is set to revolutionize the way businesses conduct B2B transactions, promoting efficiency, transparency, and inclusivity. As the platform expands, it will play a pivotal role in nurturing a thriving digital economy and fostering entrepreneurship in the country.
