In an attempt to help small and medium business enterprises in the country, the Indian government-backed e-commerce platform Open Network For Digital Commerce (ONDC) has enabled business-to-business (B2B) transactions.
The government-backed e-commerce body believes that this development will help small and medium enterprises to access the larger market to sell their products.
“By fostering seamless connectivity and digital transformation, ONDC empowers businesses to overcome these hurdles (of limited credit access, high logistics costs, etc) and embrace the advantages of B2B commerce. Leveraging the open network, businesses can expand their reach, forge new partnerships, and tap into previously untapped markets,” ONDC has claimed in a statement.
“This will open up a lot more possibilities. With the launch of the B2B-enabled open network, we are ushering in a new era of e-commerce where businesses can thrive online, overcoming the challenges that have held them back,” ONDC CEO T Koshy, said.
Multiple media reports stated that New Delhi-based SignCatch and Kochi-headquartered Rapidor have powered the B2B payments. Both companies have enabled buyer and seller side platforms on the network.
“Our dream is to bring onboard more than 30-40 lakh small businesses which are today supplying to larger businesses and get them to have a chance of expanding their markets, added Sivasubramanian Ramann, the MD and chairman of Sidbi.
The network registered its first B2B payment on May 21 at a gathering of network participants.
According to a report by CNBCTV18, ONDC is present in 240 cities with 47 network participants. Out of these 47 participants, 12 are buyers, seven are logistic partners and the rest are sellers.
Last week, ONDC announced a revised incentive scheme for its participants. It took the initiative to reduce the dependency on discounts.