Companies such as Zoho, Uber, Paytm, and BSE Technologies have injected fresh funding into the platform
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The Open Network for Digital Commerce (ONDC) has secured ₹220 crore in fresh funding from a consortium of investors, including Zoho, Uber, Paytm, and BSE Technologies and this development, industry observers say, could strengthen the government’s ambitious attempt to build an open alternative to dominant platforms.The capital infusion comes at a time when ONDC is looking to regain momentum after a challenging few years marked by sluggish consumer adoption and the exit of some network participants from food and grocery delivery. While the network was envisioned as a decentralised digital commerce infrastructure that would reduce the dominance of large platforms, it has struggled to achieve scale comparable to established players.Industry experts say the latest fundraise is significant not merely because of the capital involved but because of the strategic nature of the investors backing the network.“The moment you have a technology player actually putting in money, it means a lot. It means the backbone of technology is going to grow deeper and wider,” said Harish Bijoor, a business and brand strategy expert. “The current fundraise is definitely going to give ONDC a more meaningful character as a challenger.”Tough CompetitionThe participation of ecosystem players such as Uber and Paytm could also help drive greater engagement with the network, analysts said. ONDC has been attempting to increase participation from both buyers and sellers while simultaneously improving the overall user experience.Despite its promise, ONDC continues to face significant hurdles. Lloyd Mathias, independent director, angel investor and business strategist, said the network has yet to establish itself as a serious alternative to established ecommerce platforms.“They’ve been around four years, but they haven’t gained enough traction to really emerge as an option to the established players,” Mathias said.According to him, ONDC’s biggest challenge has been creating the network effects required to sustain growth. “The biggest issue was that not enough customers got onto the platform because not enough sellers were on the platform, and the customer experience was not seamless,” he said.Major ChallengesMathias believes the new investors could play a more active role in helping ONDC scale. “Getting people like Uber and Paytm to invest gives them skin in the game and encourages them to actively use the platform,” he said.Experts caution, however, that funding alone will not be enough. ONDC will need to improve customer experience, increase awareness about how the network works and identify categories where it can differentiate itself from entrenched competitors.“ONDC swims alone in an ocean of sharks,” Bijoor said. “The funding gives ONDC the potential to challenge existing players and change perceptions about its true ability.”Whether the latest funding round marks a turning point for ONDC will depend on its ability to convert investor confidence into sustained consumer adoption—something that has remained elusive since its launch.Published on June 3, 2026
