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The National Payments Corporation of India (NPCI) is looking to pick a 9-10% stake in the government’s digital commerce initiative, the Open Network for Digital Commerce (ONDC).

NPCI manages the digital payments network of UPI and the CEO of the payments corporation Dilip Asbe is also a part of the advisory council of ONDC.

An ET report citing sources said that the NPCI will invest around INR 10 Cr in ONDC, with approvals being in place already. The report noted that the process is likely to be completed within the next 10 days.

Apart from the NPCI, the National Securities Depository Limited (NSDL) and the Bank of India are also looking to acquire stakes in ONDC. It is prudent to note that ONDC already has the likes of the State Bank of India (SBI), Punjab National Bank, Axis Bank, Kotak Mahindra Bank and HDFC Bank as stakeholders.

The report cited a source stating that the ONDC will have 20 stakeholders, including private and public banks. The government’s digital commerce initiative completed the paperwork for 17 entities by March this year, with the next three (NPCI, NSDL and Bank of India) set to be completed in the next 10 days.

Launched towards the end of 2021, the ONDC is an initiative spearheaded by T Koshy and managed by the Department for Promotion of Industry and Internal Trade (DPIIT). ONDC is expected to bring equity to India’s ecommerce landscape. Currently, Amazon India and Flipkart control more than 60% of India’s ecommerce market.

The government’s open ecommerce ambition is set to go public by early September, according to media reports. Currently, it is in the pilot phase, live in several Indian cities to iron out the chinks in the workflow. It is also expected to be available in more than 100 towns and cities across India by early September 2022.

In a recent interview with Inc42, the CBO of ONDC said, “ONDC is inevitable, and it will take [ecommerce penetration] to 40-50% in the coming years.”

For the next five years, the government has set steep targets for the project, reflecting on its potential impact on India’s ecommerce industry, set to become a $400 Bn market opportunity by 2025.

The digital commerce initiative aims to generate 3 Bn orders per month, take 15 Bn neighbourhood shops online, onboard up to 900 Mn digital buyers and reach a gross merchandise value (GMV) of $48 Bn over the next five years.