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Microsoft joins ONDC; to roll out shopping app for Indian consumers

As it comes onboard the open network for digital commerce (ONDC) platform, the tech behemoth plans to introduce social e-commerce or a group buying experience in the Indian market through the entry. Microsoft said that it will roll out a shopping app for Indian consumers, along with their social circle.

ET Now Digital

Updated Aug 10, 2022, 07:42 IST

New Delhi: US-based technology corporation Microsoft has become the first major multinational company to join India’s ambitious open e-commerce initiative open network for digital commerce (ONDC) platform.

The initiative started in a pilot phase in 5 Indian cities ‑ Delhi, Bengaluru, Coimbatore, Bhopal, and Shillong. It went live in the sixth city of Lucknow in June.

As it comes onboard the ONDC platform, the tech behemoth plans to introduce social e-commerce or a group buying experience in the Indian market through the entry. Microsoft said that it will roll out a shopping app for Indian consumers, along with their social circle.

“By utiliaing the strength of our open network users, Microsoft, too, can implement their creative ideas like social commerce swiftly,” said T Koshy, managing director of ONDC.

“As we lay the foundation of a level-playing field for every stakeholder in the industry, joining hands with Microsoft is a testament to our credibility to foster an open e-commerce ecosystem with numerous possibilities,” he added.

Analysts view the latest development as giving the company access to micro, small and medium enterprises as well as mid-market customers. “This fits into Microsoft’s agenda and strategy in a big way,” Economic Times quoted Sanchit Vir Gogia, CEO of Greyhound Research, as saying.

He added that Microsoft is entering the ecommerce space not as a retailer, but as a tech stack provider, enabling those who fuel ecommerce.

Joining the ONDC network would let Microsoft increase its reach to those who need digitisation and further sell its products and services at a much more affordable price point apart from driving analytics based on the data that it will collect through its app.

The network “is a win-win for both buyers and sellers as it will enable them to connect without dependency on any e-commerce solution,” said a spokesperson for Microsoft.

ONDC is still at a formative stage and none of the companies that are live on the platform right now are tech stack providers like Microsoft, Gogia said.

The government's ambitious programme aims to do the same for retail what UPI did for payments, as it is based on the concepts of decentralisation, openness, and greater user utility.

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