Microsoft has become the first tech giant to join the Open Network for Digital Commerce (ONDC), a Government of India initiative to develop an open network for digital commerce. 

Social e-commerce

The tech giant intends to introduce social e-commerce, i.e., group buying experience, in the Indian market. This year, it plans to launch a shopping app for Indian consumers, along with their social circle, harnessing the ONDC network to discover the best pricing among retailers and sellers.

T. Koshy, MD and CEO, ONDC, said, “ONDC network is not just a model but a flexible idea that has a lot of explored and yet to be explored potential. As Microsoft plugs into the network, it’s a step in the same direction for both of us. By utilising the strength of our open network users, Microsoft, too, can implement their creative ideas like social commerce swiftly.”

Digitisation of commerce

By 2030, the Indian e-commerce industry is anticipated to reach $400 billion, increasing at a 19 per cent CAGR. The industry will continue to flourish in the coming years, backed by high internet penetration and easy UPI payments. ONDC aims to catalyse and accelerate this by enabling all kinds of buyers and sellers to leverage the digitisation of commerce through its network, as it is based on the concepts of decentralisation, openness, and user utility.

The Spokesperson of Microsoft said, “The Indian e-commerce industry has tremendous growth potential in the next decade. Initiatives like ONDC can be a game changer amid this boom. Their UPI-like network for digital commerce is a win-win for both buyers and sellers as it will enable them to connect without dependency on any e-commerce solution.”