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E-Commerce Giant Meesho Merges with Govt’s ONDC


Meesho, an online store in Bengaluru, has confirmed its collaboration with the government's Open Network for Digital Commerce (ONDC). According to the company, the trial will begin in Bengaluru. It will be progressively expanded to other cities in the following months.

According to the business, the move would assist in linking shoppers with hyperlocal vendors and promote India's objective of developing inclusive e-commerce store management services.

Continue reading to get in-depth knowledge. 

What is ONDC? 

The Open Network for Digital Commerce (ONDC) is a private non-profit business formed by the Government of India's Department for Promotion of Industry and Internal Trade to foster open e-commerce. It was founded on December 31, 2021, with initial funding from the Quality Council of India and Protean eGov Technologies Limited.

ONDC is a collection of guidelines to facilitate open exchange and linkages between shoppers, technological platforms, and retailers rather than an application, middleman, or software. Technological independence necessitates a level playing field, primarily from local stores, reducing the entry barriers and breakthroughs online.

This embraces an open digital realm across key sectors and corrects the anti-competitive behavior of large e-commerce firms such as Amazon and Flipkart. Designed to prevent Big Tech businesses from breaking the Consumer Protection Rules, 2021 by merging them into an open-source platform where data storage breaks down data silos and data interoperability allows for innovation. 

Meesho’s Take on Merging with ONDC 

Meesho is one of the top digital marketing companies in India that assists small companies in prospering online. The Meesho marketplace provides the following: 

  • Access to millions of clients. 
  • A selection of over 700+ categories. 
  • Pan-India shipping. 
  • Payment services. 
  • Client service facilities to small companies (SMBs, MSMEs, and individual entrepreneurs). 

Meesho's focus on smaller cities is an important difference and facilitator of ONDC's success. Meesho has established strong contacts with start-ups and small businesses in these locations, which will aid in implementing the ONDC network. Furthermore, Meesho's technology platform will enable small enterprises to sell their items on the ONDC marketplace swiftly and efficiently.

"At ONDC, our mission is to develop an open e-commerce ecosystem that benefits people. "E-commerce is still at early stages in India, and digital developments like Meesho will indeed be critical network operators for ONDC throughout this journey," said ONDC CEO T Koshy. Meesho, funded by SoftBank, says that 80% of its 14 crore yearly transactional consumers originate from Tier 2 and beyond areas. 

He also stated that ONDC would significantly boost India's e-commerce sector by getting more customers online. "Meesho has long been dedicated on creating e-commerce better approachable, and the collaboration with ONDC will amplify the corporation's initiatives in this direction," the statement reads. 

Meesho is working to make e-commerce more accessible, and the integration with ONDC will help the company's efforts. "With a common objective of empowering small sellers and giving a boost to hyperlocal enterprises, the integration will accelerate our efforts to democratize online commerce for everyone," stated Vidit Aatrey, Founder and CEO of Meesho.

By getting more customers online, ONDC will also help to boost India's e-commerce sector. We have been collaborating closely with ONDC to guarantee that the connection goes well and that the user experience is consistent," said the Founder. 

Key Takeaways 

After Paytm, Dunzo, and Shiprocket, Meesho is the fourth unicorn to join the government's ONDC project. To democratize online buying, larger e-commerce sites such as Paytm Mall and CoutLoot joined ONDC. 

Recently, SaaS start-up Zoho Commerce's e-commerce platform Zoho Commerce teamed with the online sales network to allow vendors and existing clients to set up online stores and join ONDC. Meesho, the digital e-commerce platform and branding and marketing agency, is the latest to join the government's ONDC, which aims to link purchasers and hyperlocal suppliers. 

At the India Today Conclave Mumbai 2022, Koshy observed, "Any transaction has two sides - money and products and services. The NPCI democratized money transactions. It demonstrated that money is neither private property nor a closed loop. That is what we anticipate ONDC doing for products and services." 

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