PWG Business News: Your Gateway to Market Intelligence
PWG Business News is committed to providing real-time updates and expert-driven insights across various industries, including technology, healthcare, finance, energy, automotive, and consumer goods. We deliver carefully curated news, financial reports, and research-based updates, helping businesses and professionals stay informed and competitive in today’s dynamic business environment.
Our News section covers industry-shaping events such as market expansions, new product launches, mergers and acquisitions, policy shifts, and corporate earnings, offering a strategic advantage to decision-makers seeking actionable intelligence. By bridging industry leaders, stakeholders, and professionals with data-driven content, we empower our audience to navigate the complexities of the global market with confidence.
PWG Business News: Keeping You Ahead in the Business World
At PWG Business News, we deliver timely and credible business news, covering global market trends, economic shifts, and emerging opportunities. With comprehensive coverage spanning healthcare, technology, telecommunications, utilities, materials, chemicals, and financials, our platform provides accurate, well-researched insights that drive success for executives, investors, and industry professionals alike.
Whether you're tracking regulatory updates, innovation trends, or strategic collaborations, PWG Business News ensures you have access to high-quality, data-backed reports that enhance brand visibility, credibility, and engagement. Our mission is to keep you ahead by serving as your trusted source for impactful industry news and market intelligence.
Stay informed with PWG Business News – your gateway to the insights that shape the future of business.
Consumer Discretionary
The Open Network for Digital Commerce (ONDC) is a government-backed digital commerce platform in India, launched in 2022. It aims to democratize e-commerce by creating an open network where multiple platforms can integrate, fostering competition and ensuring a level playing field for all businesses, especially smaller ones and local sellers. ONDC has expanded rapidly, crossing over 200 million orders across various sectors such as retail, logistics, and mobility[1][2].
ONDC has been designed to address the monopolistic trends in digital commerce by allowing numerous e-commerce platforms, small businesses, farmers, and artisans to connect directly with consumers. It currently operates across 616 cities with over 764,000 registered sellers and service providers, spanning 13 domains including food, grocery, fashion, electronics, and financial services[1]. However, despite its overall growth, ONDC's retail segment has been facing challenges in recent times.
The retail segment of ONDC, which includes e-commerce, grocery, and food delivery services, has seen a significant decline in orders. This downward trend began after the platform reduced financial incentives for sellers and customers. The monthly cap on these incentives was decreased from ₹3 crore in July 2024 to about ₹30 lakh by March 2025[1][2]. As a result, the number of retail transactions on ONDC peaked at 6.5 million in October 2024 but fell to 4.6 million in February 2025[1][2].
Smaller players like Magicpin, Paytm, and Ola Consumer, which previously heavily relied on these subsidies to offer customer discounts, have been particularly affected by the reduction in incentives. This has led to a shift in strategies among these companies. For instance, PhonePe exited ONDC last year to focus on its own services, including a new 15-minute grocery delivery service developed in partnership with retail stores[2]. Similarly, Paytm removed the ONDC shopping icon from its app's homepage, focusing more on core businesses such as payments, lending, and wealth management[2].
In an effort to monetize transactions more effectively, ONDC plans to introduce a service fee of ₹1.5 per transaction for orders exceeding ₹250 through seller apps, starting April 2025[1]. This move is seen as a strategic shift towards sustainability while maintaining the network's growth momentum in other sectors.
Despite challenges in the retail segment, ONDC's logistics and mobility sectors have shown promising growth. The mobility segment recorded 8.1 million transactions in February 2025, marking a 47% increase from October 2024[1]. Similarly, the logistics vertical witnessed significant growth after onboarding major players like Loadshare, Ola, and Shadowfax, with order volumes rising from 35,000 in April 2024 to two million in February 2025[1].
To address the decline in retail orders, ONDC has been exploring new strategies. Recently, it launched a subsidiary named Nirmit Bharat with the DigiHaat app, aimed at enhancing digital commerce accessibility for small businesses, farmers, and artisans[3]. This initiative is part of ONDC's broader mission to democratize digital commerce and foster innovation in the ecosystem.
The reduction in financial incentives presents both challenges and opportunities for ONDC. While it forces platform participants to become more sustainable and cost-effective, it also underscores the importance of diversification and innovation within the network. As ONDC continues to evolve, its ability to adapt to changing market dynamics will be crucial for its long-term success.
As ONDC navigates through these challenges, the introduction of the new service fee and the expansion of other sectors like logistics and mobility are expected to pave the way for sustainable growth. The platform's commitment to democratizing digital commerce remains strong, with ongoing efforts to support small businesses and create a more inclusive marketplace.
ONDC's journey highlights the challenges of balancing growth with sustainability in the digital commerce sector. As the platform continues to expand and innovate, addressing the current decline in retail orders will be pivotal. The success of ONDC will depend on its ability to adapt to the changing landscape of digital commerce and maintain its commitment to fostering competition and inclusivity.
