ONDC Secures Fresh Funding To Accelerate Its 2.0 Growth Strategy
Government-backed digital commerce network Open Network for Digital Commerce (ONDC) is raising Rs 430 crore from a consortium of strategic investors as it prepares for the next phase of expansion under its ONDC 2.0 roadmap.
The funding round includes participation from major corporate and institutional investors such as Zoho, Uber, Paytm, State Bank of India, Amul, National Stock Exchange, and several other organizations.
The fresh capital is expected to strengthen ONDC’s efforts to build a nationwide digital commerce infrastructure that can support millions of businesses and consumers across India.
Zoho Emerges As Largest Investor In First Tranche
According to regulatory filings accessed from the Registrar of Companies (RoC), ONDC has already received Rs 220 crore in the first phase of the funding round.
Zoho emerged as the largest contributor, investing Rs 70 crore. Uber and Paytm followed with investments of Rs 60 crore each, while BSE Technologies contributed Rs 30 crore.
The participation of both technology companies and financial institutions highlights the broad industry support for ONDC’s open-network commerce model.
More Strategic Investors To Infuse Rs 210 Crore
The remaining Rs 210 crore is expected to be infused through one or more subsequent tranches.
Investors slated to participate include the National Stock Exchange, Quality Council of India, Punjab National Bank, Amul, and National Agricultural Cooperative Marketing Federation of India, each contributing Rs 30 crore.
State Bank of India is expected to make the largest contribution in the upcoming tranche with an investment of Rs 60 crore.
How Will ONDC Use The Funds?
The newly raised capital will support ONDC’s transition toward its ONDC 2.0 strategy, which focuses on building a robust and scalable digital commerce ecosystem.
The funds are expected to be deployed across artificial intelligence-led commerce initiatives, agentic commerce solutions, digital public infrastructure projects such as DigiCatalog, quality assurance systems, and expansion into additional sectors.
The network is increasingly positioning itself as a foundational layer for digital commerce rather than a conventional ecommerce marketplace.
Why Is ONDC Important For India’s Ecommerce Ecosystem?
Backed by the Department for Promotion of Industry and Internal Trade (DPIIT), ONDC was created to democratize ecommerce by enabling interoperability between buyers, sellers, logistics providers, and payment platforms.
The network aims to reduce entry barriers for small businesses and merchants while promoting greater competition in India’s digital commerce market.
Unlike traditional ecommerce platforms that operate closed ecosystems, ONDC allows participants to transact through an open network framework.
ONDC’s Scale Continues To Grow
The platform has witnessed significant adoption over the past year.
According to company data, ONDC processed 218 million transactions during FY26, reflecting growing participation from merchants, logistics providers, consumers, and service providers across categories.
The latest funding comes shortly after Zoho publicly announced its Rs 70 crore investment in ONDC, citing its commitment to supporting sovereign digital infrastructure and improving technology access for India’s MSME sector.
With backing from some of India’s largest institutions and technology companies, ONDC is entering a new phase focused on AI-driven commerce, digital infrastructure, and nationwide scale.
