Wednesday, May 13, 2026: Zoho Corporation has invested Rs 70 crore in Open Network for Digital Commerce (ONDC), strengthening its focus on building sovereign and inclusive technology ecosystems for Indian businesses.
The Chennai-headquartered SaaS major said the investment aligns with its broader vision of making digital tools more accessible for micro, small, and medium enterprises (MSMEs), a segment that continues to face barriers in conventional e-commerce ecosystems dominated by closed platforms.
Sivaramakrishnan Iswaran, CEO of Zoho Payment Technologies and Global Head of Finance and Operations Business Unit at Zoho, said India’s MSME sector often struggles with platform-driven limitations that do not cater to the realities of small businesses. According to him, ONDC’s open-network architecture gives these businesses greater control over market access and growth opportunities.
Zoho Joins India’s Open Commerce Mission
Launched as an initiative to democratise digital commerce in India, Open Network for Digital Commerce is building interoperable digital rails aimed at reducing fragmentation, lowering entry barriers, and improving trust across the commerce ecosystem. The network is increasingly positioning itself as a foundational layer for sectors ranging from retail and logistics to mobility and financial services.
The timing of Zoho’s investment reflects growing confidence in India’s open-network model. Open Network for Digital Commerce said it enabled 218 million transactions in FY 2025–26, highlighting rapid adoption across categories and geographies. The network has also been expanding beyond urban commerce use cases into grassroots retail and rural entrepreneurship.
One of the standout examples has been Open Network for Digital Commerce DigiDukaan, which reportedly onboarded more than 10,000 kirana stores within months of launch, accelerating digitisation in general trade procurement. The network also witnessed a sharp rise in commerce activity from rural entrepreneurs, with order volumes for farmers, artisans, and handicraft sellers growing 11 times during FY 2025–26.
Zoho has already been building products around the Open Network for Digital Commerce ecosystem through applications such as Vikra, its seller app on the network, along with business tools including Zoho Books, Zoho Inventory, Zoho ERP, and Zoho Commerce. The company says these offerings are helping small businesses digitise operations while connecting them to wider online markets through ONDC-enabled commerce.
The investment also signals a broader trend emerging in India’s startup and technology ecosystem, where homegrown firms are increasingly backing open digital infrastructure projects. As debates around platform monopolies, data ownership, and digital inclusion continue globally, Open Network for Digital Commerce’s interoperable model is attracting support from companies seeking alternatives to traditional marketplace structures.
For Zoho, the move is not just a financial investment, but also a strategic bet on India’s next phase of digital commerce growth, one that could be driven as much by kirana stores and rural sellers as by large online marketplaces.
