Zoho invests Rs 70 Cr in ONDC to support MSMEs

Zoho Corporation, a Chennai-based SaaS firm, has committed Rs 70 crore to Open Network for Digital Commerce (ONDC), a government-backed initiative under the Department for Promotion of Industry and Internal Trade (DPIIT). The funding targets the development of an interoperable ecommerce network to lower barriers for MSMEs, which face challenges like limited market access and structural constraints from traditional digital platforms. ONDC’s network processed 218 million transactions in FY26, demonstrating rapid growth. The platform’s DigiDukaan initiative has onboarded over 10,000 kirana stores since its launch, while order volumes for farmers, artisans, and rural sellers surged 11-fold in the same period. Zoho’s investment aligns with its existing tools—Vikra, Zoho Books, Zoho Inventory, and Zoho Commerce—to help MSMEs digitize operations and integrate with ONDC. Vibhor Jain was recently appointed as ONDC’s Managing Director and CEO, following his role as Chief Operating Officer and acting CEO during the leadership transition. The collaboration aims to strengthen India’s digital economy by fostering open, inclusive commerce ecosystems for small businesses. Sivaramakrishnan Iswaran, CEO of Zoho Payment Technologies and Global Head of Finance and Operations BU at Zoho, highlighted the critical role of MSMEs in India’s economy. He emphasized the need for digital platforms to address their operational and market access challenges, ensuring broader participation in the digital economy.