Zoho Corporation has announced a ₹70 crore investment in the Open Network for Digital Commerce (ONDC) to promote the development of homegrown technology in India. This move is part of Zoho's plans to enhance technology accessibility and inclusivity for businesses of all sizes.
“India’s economy depends heavily on MSMEs, yet they face challenges on all fronts—from limited market access to structural constraints imposed by conventional digital platforms that rarely align with their unique needs. ONDC, which is an excellent initiative, gives power back to MSMEs, enabling them to expand their customer reach and achieve sustainable growth,” Sivaramakrishnan Iswaran, CEO of Zoho Payment Technologies and Global Head of Finance and Operations BU, Zoho, said in a statement.
ONDC aims to democratise Indian commerce through open digital frameworks that enhance interoperability and inclusivity. By addressing high entry barriers and fragmented systems, it aims to empower businesses of all sizes. With 218 million transactions projected for FY 2025-26, ONDC is establishing essential infrastructure for India’s next phase of growth.
Zoho facilitates MSME digitisation through the ONDC Network using apps such as Vikra, Zoho ERP, and Zoho Commerce. This investment will further develop the ecosystem and accelerate adoption, enabling more businesses to participate in the digital economy.
“Zoho shares with ONDC its philosophy of building sovereign technology to champion accessibility, flexibility, and inclusion of businesses of every size. We further believe that the private sector must play its part in nation-building,” he added.
ONDC’s interoperable model is enhancing digital commerce across retail, logistics, and finance. For example, ONDC DigiDukaan onboarded 10,000 kirana stores recently, while order volumes for rural workers increased 11-fold in FY 2025-26.
In logistics, the FIFO fleet allocation model scaled 50 times in six months, aiding gig workers. Moreover, ONDC-powered metro ticketing is now live across nine systems, demonstrating its reach beyond traditional e-commerce.
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