NSDL buys 5.6% stake in ONDC for Rs 10 crore

Leading central securities depository National Securities Depository Limited (NSDL) has acquired 5.6 per cent stake or 10,00,000 equity shares in Open Network for Digital Commerce (ONDC) at Rs 100 each. NSDL has pumped in Rs 10 crore in ONDC under the private placement route. 

Commenting on the deal, NDSL MD and CEO Padmaja Chunduru said, “This strategic deal will further strengthen the digital ecosystem to take digital e-commerce to the people of India.” ONDC MD and CEO T Koshy noted, “We are glad to have NSDL as a stakeholder which would be of strategic benefit considering their experience in reach and technology.” 

NSDL has a market share of 89 per cent in terms of custody value viz. $4 trillion and its investors are present in 99.2 per cent of pincodes in India. 

The Commerce Ministry rolled out ONDC to give greater thrust to retail e-commerce penetration in India. ONDC is a non-profit company established by the Department for Promotion of Industry and Internal Trade (DPIIT) and has three components– buyer-side apps, seller-side apps and logistics providers. 

It is open to the public in parts of Bengaluru. Consumers can place orders in groceries and restaurants through buyer apps in the ONDC network. Mystore, Paytm and Spice Money are available as buyers apps on ONDC at present. 

Spice Money is the only rural fintech player and one of the four buyer-side apps to be on ONDC which is live for beta in Bengaluru Urban district.

Seller apps such as Uengage, Growth Falcons, eVitalrx, e-Samudaay, Go Frugal, Innobits Mystore, Bizom, Digit, nStore, Ushop and SellerApp. Apps like Shiprocket, Dunzo and Loadshare will provide logistical support whereas Protean eGov Technologies will provide gateway services. 

Also read: How’s ONDC solving small sellers’ discoverability and commission concerns on e-commerce