Zoho Corporation’s Investment in ONDC Enhances Digital Commerce

Zoho Corporation has committed Rs 70 crore to Open Network for Digital Commerce (ONDC) to advance the development of sovereign digital infrastructure in India. This initiative is designed to improve technology access for micro, small, and medium enterprises (MSMEs). The Chennai-based SaaS company indicated that this funding will contribute to making digital commerce more accessible and interoperable for smaller businesses.

The Need for Support in the MSME Sector

According to Sivaramakrishnan Iswaran, CEO of Zoho Payment Technologies and Global Head of Finance and Operations BU at Zoho, the Indian economy relies significantly on MSMEs. However, these businesses encounter numerous challenges, ranging from restricted market access to limitations enforced by traditional digital platforms.

ONDC’s Role in Interoperable E-Commerce

Supported by the Department for Promotion of Industry and Internal Trade (DPIIT), ONDC is working to establish an interoperable e-commerce network that aims to lower entry barriers for various businesses. The network achieved a remarkable 218 million transactions in FY26.

Zoho’s Products Aiding MSME Digitisation

Zoho has stated that several of its products, including Vikra, Zoho Books, Zoho Inventory, and Zoho Commerce, are already assisting MSMEs in digitising their operations and connecting to the ONDC network.

Growth in the ONDC Network

ONDC has reported that its DigiDukaan initiative has successfully onboarded over 10,000 kirana stores within just a few months of its launch. Additionally, order volumes for farmers, artisans, and rural sellers surged 11 times in FY26.

Leadership Changes at ONDC

Recently, ONDC appointed Vibhor Jain as its Managing Director and Chief Executive Officer. Jain, who previously held the role of Chief Operating Officer, was also acting CEO during the recent leadership transition.