Zoho Invests ₹70 Cr In ONDC To Boost Sovereign Tech, MSME Digitisation

CW Bureau ·

Chennai-headquartered Zoho Corporation has invested ₹70 crore in Open Network for Digital Commerce (ONDC), strengthening its commitment towards sovereign technology development and digital inclusion for MSMEs in India.

The investment aims to support ONDC’s open-network infrastructure that is designed to democratise digital commerce by enabling interoperability, inclusivity and easier market access for businesses across sectors.

Focus on MSME empowerment
Zoho Payment Technologies CEO Sivaramakrishnan Iswaran said MSMEs continue to face several structural barriers in the digital economy.

“India’s economy depends heavily on MSMEs, yet they face challenges on all fronts—from limited market access to structural constraints imposed by conventional digital platforms that rarely align with their unique needs. ONDC, which is an excellent initiative, gives power back to MSMEs, enabling them to expand their customer reach and achieve sustainable growth,” he said.

He added that Zoho and ONDC share a common philosophy around building sovereign technology focused on accessibility, flexibility and inclusion.

“We further believe that the private sector must play its part in nation building. In alignment with this vision, Zoho is proud to contribute to this ambitious initiative, strengthening the country’s Digital Public Infrastructure and paving the way for broader, more equitable participation in the digital economy,” Iswaran said.

ONDC expands digital commerce footprint
ONDC said it enabled 218 million transactions during FY2025-26 as it continued expanding its interoperable commerce network across sectors including retail, logistics, mobility and financial services.

The network has been working to address key challenges in digital commerce such as fragmented systems, high entry barriers and trust deficits, while helping businesses of all sizes participate in online trade.

Among its recent initiatives, ONDC DigiDukaan has onboarded more than 10,000 kirana stores within months of launch to accelerate digitisation in general trade procurement. The platform also reported an 11-fold increase in order volumes for kisaans, karigars and rural artisans during FY2025-26 through ONDC-enabled commerce models.

Zoho deepens ONDC integration
Zoho has already been building solutions aligned with the ONDC ecosystem through applications such as Vikra, Zoho ERP, Zoho Books, Zoho Inventory and Zoho Commerce, helping MSMEs digitise operations and access wider markets through the ONDC Network.

The latest investment is expected to further strengthen the ecosystem and accelerate adoption of open digital commerce infrastructure in India.