ONDC Records 21% Growth in July Transactions, Driven by Grocery Orders and On-Network Logistics

The Open Network for Digital Commerce (ONDC) experienced a 21 percent month-on-month increase in transactions in July, reaching 12 million, up from 9.95 million in June. This growth was primarily driven by a surge in grocery orders and enhanced on-network logistics services. Of the total transactions, 4.4 million were in the mobility category via the Namma Yatri platform, while the remaining 7.6 million were non-mobility transactions, including retail purchases and logistics for order deliveries.

870,000 in June to 1.4 million in July. The food and beverage sector also grew, with orders increasing by 21 percent to 1.7 million. The fashion category accounted for 600,000 transactions, with the remaining 4 million spanning logistics, beauty and personal care, home and kitchen, retail vouchers, and other segments.

Previously, most orders on ONDC were fulfilled by off-network sellers. However, this has shifted significantly, with on-network logistics providers such as Ola, Loadshare, Pidge, and Shadowfax handling 1.1 million orders in June, up from fewer than 50,000 in March.

The government aims to increase e-commerce penetration in India to 25 percent within the next few years, targeting a gross merchandise value of USD 48 billion through ONDC. Additionally, a new incentive structure has been introduced, reducing the maximum monthly incentive limit for participants from Rs 3 crore to Rs 2.5 crore and setting a quarterly limit of Rs 6 crore.