After Paytm, Meesho joins ONDC to connect buyers with Hyperlocal Sellers

Meesho, an e-commerce platform designed in India, has decided to join the Open Network for Digital Commerce (ONDC) so sellers can have a larger market and customers can see more products. According to Meesho’s official statement, this will allow for “hyperlocal suppliers” to gain more business while also providing consumers with what they’re looking for.

The SoftBank-backed unicorn will launch the pilot in Bengaluru, and roll the service out to other locations within a few months. Out of Meesho’s 14 crore users, more than 80% hail from Tier 2+ cities while nearly 40% of its 8 lakh sellers are located there as well. The ONDC integration will only extend its core product proposition, allowing sellers to reach an even wider range of people.

Vidit Aatrey, Founder and CEO of Meesho commented on the development by saying-

“With a shared goal to empower small sellers and give a fillip to hyperlocal businesses, the integration will boost our efforts to democratize internet commerce for everyone.”

He further continued-

“ONDC will also play an important role in expanding India’s e-commerce sector by bringing more consumers online. We have been working closely with ONDC to ensure that the integration is smooth and the user experience remains seamless.”

Platforms like Meesho, Paytm Mall, and CoutLoot have joined ONDC in order to make online shopping more accessible. Start-ups such as Dunzo, Loadshare, and Shiprocket are taking on the logistics and delivery responsibilities for the platform.

T Koshy, CEO of ONDC, spoke on Meesho’s addition-

“At ONDC, our aim is to create an open e-commerce ecosystem that caters to one and all. We are pleased to onboard Meesho as its deep capabilities in small towns will set the network flywheel in motion and take ONDC closer to our goals. E-commerce is still small in India and new-age platforms like Meesho will be strong network participants for ONDC in this journey.”

The government is hoping that ONDC will be as successful as UPI so that Flipkart and Amazon’s duopoly can finally come to an end.

Koshy, at the India Today Conclave Mumbai 2022, also stated-

“Any transaction has two parts – money, and goods and services. NPCI brought democratization in money transactions. It showed us that money is not anyone’s private property or a closed loop. That’s what we expect ONDC to do for goods and services.”

It’ll be interesting to see how this plays out in India’s already crowded online space. Stay tuned for more updates as we follow this story!

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