Add MobiGyaan as a preferred source on GoogleZoho Corporation has officially announced an investment of ₹70 crore in the Open Network for Digital Commerce (ONDC), strengthening its commitment toward India’s sovereign digital infrastructure and expanding digital accessibility for businesses across the country. The Chennai-headquartered technology company says the investment will support ONDC’s long-term vision of building open, interoperable digital commerce infrastructure for enterprises, consumers, and service providers across India.
Supporting India’s Digital Commerce Ecosystem
According to Zoho, the funding aligns with its broader efforts to bring micro, small, and medium enterprises (MSMEs) into the digital economy through integrated software and commerce solutions.
The company already supports ONDC participation through several products and platforms, including:
- Vikra seller app
- Zoho ERP
- Zoho Books
- Zoho Inventory
- Zoho Commerce
These tools allow businesses to:
- Join the ONDC network
- Digitize operations
- Expand market reach
- Access broader national commerce opportunities
Zoho says the new capital infusion will help further accelerate digital commerce adoption among Indian enterprises.
ONDC’s Open-Network Commerce Model
ONDC was established to create open digital rails focused on Interoperability, Inclusivity, Operational efficiency, and Lower entry barriers for merchants. The platform aims to address structural challenges commonly found in closed digital commerce ecosystems, including Fragmented commerce systems, High onboarding costs, Market concentration, and Trust and discovery limitations for smaller sellers.
According to recent data shared in the announcement:
- ONDC enabled around 218 million transactions during FY 2025 – 26
The network currently spans sectors such as Retail, Logistics, Mobility, and Financial services
MSME & Kirana Digitization
The announcement highlights ONDC’s increasing role in digitizing India’s general trade ecosystem.
Under the ONDC DigiDukaan initiative:
- More than 10,000 kirana stores were onboarded within months
The initiative focuses on Digital procurement, Commerce enablement, and Broader online discoverability for neighborhood retailers/
Rural Commerce Growth
ONDC also reported strong growth in rural commerce activity.
According to the company:
- ONDC-enabled commerce models drove an 11x increase in order volumes for Farmers, Rural artisan, and Craftsmen.
The network aims to improve market access and digital participation for underserved communities.
Logistics & Gig Economy Expansion
ONDC’s logistics ecosystem has also scaled significantly. The company says its FIFO (First-In, First-Out) fleet allocation framework scaled by 50 times within six months. The model is intended to improve fleet utilization, enhance operational efficiency, and create better earning opportunities for gig workers.
Mobility & Metro Integrations
Beyond e-commerce, ONDC has expanded into mobility services.
The network now supports:
- Metro ticketing across nine metro systems
These services are currently accessible through:
- More than 25 consumer applications
Commenting on this, Sivaramakrishnan Iswaran, CEO of Zoho Payment Technologies and Global Head of Finance and Operations BU, Zoho, said, “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.
Zoho shares with ONDC its philosophy of building sovereign technology to champion accessibility, flexibility, and inclusion of business of every size. We further believe that the private sector must play its part in nation building. In alignment with this vision, Zoho is proud to contribute to this ambitious initiative, strengthening the country’s Digital Public Infrastructure and paving the way for broader, more equitable participation in the digital economy.”
Zoho says the investment reflects its long-term commitment toward:
- Sovereign technology
- Open digital ecosystems
- MSME empowerment
- National-scale digital infrastructure development
The company adds that ONDC represents an important foundational layer for the next phase of India’s digital economic growth.
