Tag: ONDC

E-commerce start-up Coutloot joins ONDC to democratise e-retail

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Coutloot, which is India’s largest non-grocery retail aggregator for non-branded products, has joined the Open Network for Digital Commerce (ONDC), a government of India initiative to develop open e-commerce.

ONDC is a freely accessible and inclusive platform that aims to democratise e-commerce thereby expected to benefit small merchants with advanced technologies and better business mechanisms.

This assumes significance as it is estimated that currently there are about 12 million mom-and-pop stores in India of which only about 0.12 per cent is tech-enabled. Further, e-retail is estimated to be only four per cent of the total $800 billion retail market in India.

The latest development would make sellers on Coutloot available on the ONDC platform through which they will be able to reach a wider audience.

The partnership is also expected to mutually benefit the stakeholders of the project and strengthen the vision of ONDC of promoting open networks for all aspects of commerce over digital or electronic networks.

“In a bid to enhance our customer outreach, we are joining hands with ONDC. Consumers will find us on the ONDC platform from December this year onwards. We will be launching in two phases, first with the sellers and then with the buyers with product categories like fashion, home, beauty, and personal care. The idea is to dramatically step change eCommerce penetration in India,” said Jasmeet Thind, Cofounder, Coutloot.

According to Thind, Coutloot will be able to offer choices to sellers to be online, allow retailers and merchants to set their own terms and conditions, enable discoverability for buyers and sellers beyond large e-commerce platforms and provide opportunities for small e-commerce players to overcome supply chain barriers.

Founded by Thind and Mahima Kaul, Coutloot has connected millions of sellers and merchants with small and medium manufacturers by eradicating the agents from the system.

Incidentally, more than seven lakh street shops and small businesses have gained customers and increased their profit margins with the help of Coutloot.

The Mumbai-based start-up is one of the fastest-growing non-grocery retail aggregators in the country, enabling online commerce while also aggregating wholesale applications helping more than 5000 SKUs pick products from 240 SMEs spread across India.

The start-up has so far raised over $12 million in funding from investors including Ameba Capital, 9Unicorns, Venture Catalysts, SOSV, and Astarc Ventures.

Also read: P2M is more than 50% of UPI volumes now, says NPCI chief Dilip Asbe

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November 13, 2022
IDBI Bank selloff: Government, LIC assure free hand to new promoter after divestment

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The government and state-owned insurer LIC, who will continue to hold significant shareholding in IDBI Bank after its privatisation, will not veto any proposals of the new owner as part of their plan to give the incoming promoters a free hand, a senior official said.

The government earlier this month invited bids for the sale of 60.72 per cent stake in IDBI Bank, which is 45.48 per cent owned by the government and 49.24 per cent by the Life Insurance Corporation of India (LIC).

At Friday’s closing price of Rs 44.30, IDBI Bank is valued at Rs 47,633 crore but the government is looking for at least 30 per cent markup in the sale. At the current price, the sale of 61 per cent stake would fetch about Rs 29,000 crore to the government.

The official said post-privatisation, the government and LIC shareholding will come down to 34 per cent but they do not intend to move in tandem to block any special resolution proposed by the new promoter. This is with a view to assuaging the concerns of investors.

Also read: LIC, central govt to divest 60.72% stake in IDBI Bank

“There should not be any such concern. If we are selling a 60.72 per cent stake and transferring management control, it should be clear to investors that we are not interested in controlling the institution and hence will not oppose any resolution,” the official said. “We will give an assurance on this at the RFP or financial bids stage to the qualified bidders for IDBI Bank,” the official told PTI.

There have been concerns in some quarters that the government and LIC holding 34 per cent stake in IDBI Bank after its privatisation may act as a deterrent for bidders as a shareholder or a group of shareholders together holding 25 per cent or more of the shares can effectively oppose a special resolution. Allaying such a concern, the official said “if that was the intent, then we would not have gone ahead with selling about 61 per cent stake. We could have sold less. The government and LIC would not act together in opposing any resolution and we will clarify that in writing in the share purchase pact.”

Also read: IDBI Bank forays into ONDC to help MSMEs set up their digital stores

Decisions like share buyback, loans and investments by company, removal of auditor before time and reduction in share capital require to be approved by a special resolution, with at least 75 per cent of shareholders voting in favour. While inviting the expression of interest (EoI), the government already clarified that if the successful bidder intends to amalgamate IDBI Bank with itself or if the same is required by RBI, the Centre and LIC will vote in favour of any such merger/ amalgamation at the board and/or shareholders’ meetings of IDBI Bank

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October 23, 2022
NSDL buys 5.6% stake in ONDC for Rs 10 crore

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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

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October 12, 2022