Vijay Shekhar Sharma, the CEO and founder of One97 Communications, the parent company of Paytm, announced on Monday that the company is contemplating onboarding 10 million merchants by 2025 onto the government-backed Open Network for Digital Commerce (ONDC) platform. He stated that approximately 11.8 million customers have already been directed to Paytm’s product through the ONDC platform.
Paytm’s ecosystem revolves around small merchants, and its mission is centered on assisting these businesses in becoming integral parts of the mainstream economy. Vijay Shekhar Sharma shared this vision at an ONDC event, emphasizing the role of ONDC in expanding Paytm’s reach and connecting with new customers.
ONDC is a government-supported platform open to all e-commerce stakeholders for service onboarding. Digital payment firms such as Paytm, PhonePe’s Pincode, and hyperlocal e-commerce company magicpin are among the entities present on this platform.
Vijay Shekhar Sharma highlighted that ONDC already boasts more than 10 million customers, constituting one-fifth of the total e-commerce market in India. The platform provides an avenue for merchants to connect with a vast customer base actively seeking new products and services.
Sharma acknowledged the challenges of trust and discovery that come with bringing a large number of merchants onboard but expressed optimism, stating that there is a significant pool of customers ready to embrace online shopping.
The CEO’s commitment to bringing 10 million merchants onto ONDC by the end of 2025 reflects Paytm’s dedication to leveraging digital commerce platforms for the benefit of small businesses. The move aligns with the broader mission to foster financial inclusion and enhance the accessibility of digital services.
T Koshy, the Managing Director and CEO of ONDC, provided insights into the platform’s recent operations. He noted that since January, ONDC has witnessed significant growth, with nearly 5 million transactions this month, compared to approximately 1,200 transactions at the beginning of the year. Transactions are now occurring in 600 cities, indicating widespread adoption.
Koshy expressed optimism about the future, envisioning substantial growth in transactions in the next 1-2 years. The goal is to add another zero to the current transaction levels within a year, signifying the platform’s potential to catalyze a significant shift in e-commerce dynamics.
The commitment and growth seen in Paytm’s engagement with ONDC underscore the transformative impact that government-backed digital commerce initiatives can have on connecting businesses with consumers and fostering economic growth.
