In a major boost to India’s digital commerce ecosystem, SaaS giant Zoho Corporation has announced a ₹70 crore investment in the Open Network for Digital Commerce (ONDC). The capital infusion aims to accelerate the development of sovereign digital infrastructure and democratize technology access for Micro, Small, and Medium Enterprises (MSMEs) across the country.
The investment underlines Zoho’s commitment to fostering an inclusive, interoperable digital marketplace that levels the playing field for smaller merchants who are often sidelined by traditional, monopolistic e-commerce platforms.
“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,” said Sivaramakrishnan Iswaran, CEO of Zoho Payment Technologies and Global Head of Finance and Operations BU.
Driving Digital Inclusion
ONDC, an initiative backed by the Department for Promotion of Industry and Internal Trade (DPIIT), operates as an open network designed to break down entry barriers for independent sellers. The network has seen explosive growth, processing a staggering 218 million transactions in FY26.
Zoho is already deeply integrated into this ecosystem. The company leverages its existing suite of business software—including Vikra, Zoho Books, Zoho Inventory, and Zoho Commerce—to help small businesses seamlessly digitize their operations and plug directly into the ONDC network.
Grassroots Impact and Leadership
The network’s hyper-local initiatives are already yielding massive dividends for rural and small-scale commerce:
DigiDukaan Success: Over 10,000 neighborhood kirana stores have been onboarded within just months of the initiative’s launch.
Rural Growth: Order volumes for farmers, artisans, and rural sellers experienced an 11X surge in FY26.
This funding announcement closely follows a key leadership transition at ONDC. Last month, the network appointed Vibhor Jain as its permanent Managing Director and Chief Executive Officer. Jain, who previously served as Chief Operating Officer, had been leading the organization as acting CEO during the transition period.
With Zoho’s financial backing and suite of digital tools, ONDC is well-positioned to further scale its infrastructure, accelerating the shift toward a more decentralized and equitable digital economy in India.
By: Sandhya Bharti
