The Open Network for Digital Commerce (ONDC) has announced its foray into the financial services sector with the launch of a digital lending initiative that promises to deliver paperless loans within just six minutes. This new service, aimed at both salaried and self-employed individuals, will be accessible through nine buyer applications, including Easypay, Paisabazaar, Tata Digital, and Paynearby, as well as three lenders: Aditya Birla Finance, DMI Finance, and Karnataka Bank.
In a statement released on Thursday, ONDC revealed that additional buyers such as Mobikwik, Rupeeboss, and Samridh.ai have expressed strong interest in expanding this digital credit model. Moreover, a wide range of lenders, including HDFC Bank, IDFC First Bank, Faircent, Pahal Finance, Fibe, Tata Capital, Kotak Mahindra Bank, Axis Finance, FTCash, and Central Bank of India, are considering joining the initiative.
“This innovation not only reduces operational costs for lenders and buyer applications but also enhances financial inclusion, fostering economic growth and opportunity across the country. This goes well with ONDC’s vision of inclusion, now extending to financial inclusion,” said T Koshy, Managing Director and CEO of ONDC.
The digital lending initiative by ONDC aims to simplify the borrowing experience and expand credit availability, even to remote and underserved regions, by integrating multiple digital systems into a single streamlined process.
Following this launch, ONDC plans to roll out GST invoice financing loans by the end of September 2024. The network also intends to introduce additional products such as purchase financing for individuals and sole proprietors, and working capital lines for partnerships and private limited companies.
Earlier this month, ONDC reported a significant milestone, reaching 12 million monthly transactions in July, with daily orders surpassing 430,000. Mobility services led the way with 4.4 million orders, followed by food and beverage with 1.7 million, grocery with 1.4 million, and fashion with 0.6 million orders. The remaining 4 million orders were distributed across on-network logistics, beauty and personal care, home and kitchen, and retail vouchers.
Looking ahead, T Koshy anticipates that the ONDC network will scale up to 40-50 million monthly transactions by the end of 2024, further solidifying its position as a key player in India’s digital commerce and financial services landscape.