STARTUP-STORIES

Reliance Retail Launches ONDC Pilot Through Fynd Platform

SUMMARY

Reliance Retail is testing the waters of ONDC (Open Network for Digital Commerce) through a pilot program with Fynd, an omnichannel platform. They are starting with one store and plan to scale up to hundreds if successful. This could significantly boost ONDC adoption and benefit Reliance by giving them wider customer reach and a level playing field.

ONDC is a relatively new platform (launched in January 2023) with most transactions currently in mobility (ride-hailing). Reliance's involvement, if expanded, could bring more users and sellers to ONDC, creating a stronger network effect for all.

Reliance Retail Ventures Limited (RRVL), India's retail giant, is dipping its toes into the government-backed Open Network for Digital Commerce (ONDC) through a pilot program. This move signifies a potential boost for ONDC adoption and could reshape the Indian e-commerce landscape.

Pilot Program Launched: RRVL is piloting ONDC integration through Fynd, an omnichannel platform in which Reliance holds a stake.

Initial Testing: One Reliance Retail store (Shri Kannan Departmental Store in Tamil Nadu) is currently live on ONDC via Fynd.

Potential Expansion: Reliance plans to gradually scale up ONDC participation, potentially including all its brands. This could involve hundreds of stores across India.

Reliance Retail's Footprint: Reliance Retail boasts a vast network with over 18,800 stores, 300 million registered customers, and a sizable online presence.

Benefits of ONDC Participation for Reliance:

Wider Customer Reach: ONDC can connect Reliance to a broader customer base beyond its own e-commerce platforms.
Level Playing Field: ONDC promotes a level playing field for retailers, potentially benefiting Reliance in a competitive market.
Improved Discoverability: Reliance stores could gain increased discoverability for consumers searching for products on ONDC.

Benefits of Reliance's Participation for ONDC:

Credibility Boost: Reliance's involvement enhances ONDC's credibility and attracts other major retailers.
Increased User Base: Reliance's vast customer base can significantly boost ONDC user adoption and transaction volume.
Enhanced Network Effect: More prominent players joining ONDC create a stronger network effect, attracting buyers and sellers alike.

Current ONDC Landscape:

Early Stage: Launched in January 2023, ONDC is still in its initial stages with 57 million transactions recorded so far.
Dominant Mobility Sector: Ride-hailing currently holds nearly half of all ONDC transactions.
Growing Non-Mobility Segment: Food & beverage, FMCG, and other non-mobility categories are gaining traction on ONDC.

Reliance Retail's pilot program marks a significant development for ONDC. With Reliance's potential full-fledged participation, ONDC could witness accelerated growth and wider adoption in the Indian e-commerce market.