The Open Network for Digital Commerce (ONDC), the aggregator platform that runs on open-source technology, is set to launch insurance and mutual fund products in the next two months and will partner MasterCard for credit cards.
ONDC also launched six-minute digital loans that will offer unsecured credit to salaried and non-salaried customers.
“We have deployed a Marine app, one insurer and two more are coming,” said T Koshy, CEO, ONDC. “For health (insurance) also, we are live, but the partner doesn’t have the licence. The motor (insurance) should happen in the next month or so. And MF will go live next month. We want to hit the 100-200 transactions first.”
The platform is also looking to incorporate credit cards in its suite of offerings but hasn’t set a timeframe on when it will be launched.
“We have a community volunteer programme, if a certain company wants to help build protocol, we hold the reins and understand that we will release it to the public,” said Hrushikesh Mehta, Senior Vice President, Financial Services – ONDC. “Just got MasterCard who is now willing to be the volunteer and build protocols for credit card rollout.”
Incorporated on 31st December 2021, Open Network for Digital Commerce (ONDC), a Section 8 company, is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India, to create a facilitative model that revolutionizes digital commerce, giving greater thrust to penetration of retail e-commerce in India.
On Thursday, ONDC launched fully digital and paperless loans available in just 6 minutes. The new offering is integrated with 9 buyer applications (also known as Lending Service Providers) and 3 lenders.
The buyer applications include Easypay, Paisabazaar, Tata Digital, Invoicepe, Cliniq360, Zyapaar, Indipe, Tyreplex and Paynearby. The lenders include Aditya Birla Finance, DMI Finance and Karnataka Bank.
“By integrating multiple digital systems into a single process, we are simplifying the borrowing experience and expanding credit availability even for remote and underserved regions,” Koshy said. “This innovation not only reduces operational costs for both lenders and buyer applications but also enhances financial inclusion, fostering economic growth and opportunity across the country.”
According to the Economic Survey 2024, transactions on the ONDC have surged past 68 million since its inception in 2022. As of June 2024, it saw a 12 percent month-on-month growth in transactions to 9.95 million. In July, ONDC did 12 million transactions, said Koshy.
Koshy also added that the ONDC network is a medium to “prevent market concentration” and democratizes access for all the sellers. He added that the network makes it possible for any buyer to get the best possible deal for goods or a service.
Koshy’s comments come after Union Commerce Minister Piyush Goyal had expressed concerns on the growing muscle of e-commerce giants like Amazon.
Koshy explained that typically, platforms prefer few large suppliers and a large customer base which leads to a network effect and eventual dying out of small businesses.
