Synopsis
Zoho Corporation has invested Rs 70 crore in ONDC to bolster India's sovereign technology and empower MSMEs. This move aims to make digital commerce more accessible, enabling small businesses to expand their reach and achieve growth. ONDC, backed by various financial institutions and government bodies, facilitated 218 million transactions in FY26.The company wants to make technology more accessible and inclusive for businesses of all types and sizes.
“India’s economy depends heavily on MSMEs, yet they face challenges on all fronts, from limited market access to structural constraints imposed by conventional digital platforms that rarely align with their unique needs,” said Sivaramakrishnan Iswaran, chief executive, Zoho Payment Technologies, in a statement. “ONDC gives power back to MSMEs, enabling them to expand their customer reach and achieve sustainable growth.”
ONDC enabled 218 million transactions in FY26. It had reported a 127% surge in total revenue to Rs 33.41 crore for FY25. Despite the topline growth, it reported a net loss of Rs 147.13 crore in FY25.
Recently, ONDC promoted Vibhor Jain as its MD and CEO, effective April 7.
ONDC is a non-profit Section 8 company and has raised equity capital from over 20 public and private financial institutions, banks, depositories, and technology companies.
The platform does not rely on traditional venture capital. Instead, it is backed by strategic stakeholders such as Quality Council of India and Protean eGov Technologies.
The National Payments Corporation of India holds a 10% stake in the open network, while National Securities Depository holds a 5.6% stake and BSE Investments, a 5.88% stake. NSE Investments is another institutional shareholder.
Others who have a stake include State Bank of India (7.84% stake), HDFC Bank (7.84% stake), Axis Bank (7.84% stake), Kotak Mahindra Bank (7.84% stake), Punjab National Bank (5.97% stake), Bank of India, ICICI Bank, IDFC First Bank, Bank of Baroda, and UCO Bank.
Small Industries Development Bank of India, NABARD, Central Depository Services, and CSC eGovernance Services are also among the platform’s backers.
