ONDC Hits Record 8.9 Million Transactions in May 2024, Retail Orders Surge to 5 Million

The government-backed Open Network for Digital Commerce (ONDC) has achieved an all-time high of 8.9 million transactions across its retail and ride-hailing segments in May 2024, marking a 23% month-on-month increase. This significant growth reflects the network’s expanding influence in India’s ecommerce sector.

Retail orders saw a notable surge, climbing to 5 million in May from 3.59 million in April. ONDC reported a single-day high of 200,000 transactions, underscoring the platform’s growing popularity. For the first time, both grocery and food delivery categories each surpassed 1 million orders. Home and kitchen orders reached 630,000, while fashion orders hit 330,000.

The food segment’s share of total retail orders decreased from 76% a year ago to 20% in May 2024, highlighting the platform’s diversification into other categories. Ride-hailing experienced slower growth, with trips increasing from 3.6 million to 3.8 million. Delhi, Uttar Pradesh, and Maharashtra led in order volume.

Thampy Koshy, CEO of ONDC, expressed his optimism about the platform’s future growth during a recent media roundtable. “We are targeting 40-50 million monthly transactions by the end of 2024,” Koshy stated. He also noted that the network now boasts nearly 550,000 merchants, predominantly from the mobility sector. However, the share of mobility transactions has dropped from 95% to 45% as other categories like food, grocery, beauty, and electronics have gained traction.

Koshy anticipates that the food segment will account for 30% and grocery for 15-20% of future transactions. The network now includes 535,000 sellers, of which 84% are small businesses. ONDC aims to boost India’s ecommerce penetration to 25%, targeting a $48 billion gross merchandise value in the coming years.

In a statement, the network highlighted its achievements and future goals. “The government-backed protocol Open Network for Digital Commerce (ONDC) recorded 8.9 million transactions across retail and ride-hailing segments in May 2024—an all-time high and a 23% month-on-month increase.”

Additionally, there are reports that the Adani Group is planning to enter the ecommerce business via the ONDC route. According to the Financial Times, the conglomerate plans to integrate its Adani One super app with the network as a buyer app.

With nearly 550,000 merchants on board, primarily from the mobility sector, and a strategic vision for expansion, ONDC is poised to significantly impact India’s digital commerce landscape in the coming years.