This MoU was signed by Sivasubramanian Ramann, CMD of SIDBI and T Koshy T Koshy, CMD and executive director at ONDC
This means that SIDBI as well as ONDC will work together to assist MSMEs in gaining access to the open network of e-commerce platforms that was proposed by ONDC
The two organizations ONDC as well as SIDBI will host sessions for MSMEs to help them understand ONDC’s protocol, network and MVP definition
Open Network for Digital Commerce (ONDC) has signed an agreement together with Small Industries Development Bank of India (SIDBI) to allow small and medium-sized enterprises using the ONDC network and , thus, growing their involvement in the field of e-commerce.
This MoU has been signed by Sivasubramanian Ramann, CMD of SIDBI and T Koshy the CEO and managing director of ONDC. In this agreement, SIDBI and ONDC will work together to assist MSMEs gain access to the open-network e-commerce platform that was proposed by ONDC.
“Through this MoU is signed, we’ll connect SIDBI’s networks with ONDC and will transform the business ecosystem of small businesses. This will act as the catalyst to encourage the participation of small businesses into the e-commerce market on a bigger scale and allow their expansion,” T Koshy said.
Each ONDC along with SIDBI will conduct sessions with MSMEs to inform the MSMEs about the ONDC network, protocol, and MVP definition. Then, both organizations will run accelerator programs that will encourage MSMEs to be active on ONDC’s network.
“For the purpose of this project, SIDBI will leverage its solid relationships with all MSME industrial clusters, starting with Morbi, Coimbatore and Ludhiana. The SIDBI team will facilitate the collaboration of ONDC in its partner grassroots organizations, for example, seeking market access for informal enterprises.” S.Ramann stated.
Ramann said that three organizations-Annapurna Finance Access Livelihoods Group and women’s cooperative organization Looms of Ladakh have joined the ONDC network just recently.
It was also reported that SIDBI will create ecommerce-embedded finance solutions.
This development comes in the midst of a time that the DPIIT-led ONDC network is rapidly expanding its presence across various sectors of the nation.
Presently, a variety of companies, both large and small, are considering joining on the ONDC network. Recently, Reliance Retail’s logistics company Grab joined to join the ONDC network. Prior to that, the Reliance’s quick commerce startup Dunzo was also a part of the ONDC network.
In addition, the e-commerce giants Flipkart along with Amazon are reportedly looking at joining the ONDC network, while the Confederation of All India Traders (CAIT) affirmed that it would join the ONDC network before the end in 2022.
In December 2021, the ONDC was established, ONDC is a brainchild of the Department of Promotion of Industry and Internal Trade (DPIIT). Through this initiative the Centre is aiming to make it easier to gain access to e-commerce online for small businesses in the country.
In essence the ONDC will bring together buyers and sellers on all consumer-oriented platform that spans across different sectors like food delivery, healthcare and hotel reservations and hotel booking, among other things. The service will officially launch in the month of August (August) and become available to the public across 75-100 cities in India.