
Zoho Invests Rs 70 Crore in ONDC to Enhance Digital Commerce Accessibility for MSMEs
Zoho Corporation Invests Rs 70 Crore in Open Network for Digital Commerce
Chennai-headquartered technology company Zoho Corporation has made a significant investment of Rs 70 crore in Open Network for Digital Commerce (ONDC) to support the development of sovereign technology in India. This move is aimed at making technology more accessible and inclusive for businesses of all sizes, particularly micro, small and medium enterprises (MSMEs).
The investment is a strategic step towards empowering MSMEs, which form the backbone of India's economy. According to data, India's economy is heavily dependent on MSMEs, yet they face numerous challenges, including limited market access and structural constraints imposed by conventional digital platforms. ONDC, however, gives power back to MSMEs by helping them expand their customer reach and achieve sustainable growth.
ONDC's Open Digital Commerce Infrastructure
ONDC is building an open digital commerce infrastructure in India through an interoperable network model. This approach aims to reduce entry barriers and improve access for businesses. In the fiscal year 2026, the network enabled 218 million transactions. Zoho's finance and enterprise software products, including Vikra, Zoho Books, Zoho Inventory, and Zoho Commerce, are already helping MSMEs digitize their operations and connect to the ONDC network.
| Company | Transaction Volume | Growth Rate |
|---|---|---|
| ONDC | 218 million | - |
| ONDC (FY26) | - | 11 times |
| DigiDukaan (ONDC) | - | - |
| Kirana Stores (DigiDukaan) | 10,000+ | - |
The investment will help expand ONDC's ecosystem and accelerate adoption among businesses. ONDC's DigiDukaan initiative has onboarded more than 10,000 kirana stores within months of launch, while order volumes for farmers, artisans, and rural sellers grew 11 times in FY26 through ONDC-enabled commerce models.
Investor Takeaway
Investors should consider the potential growth of digital commerce in India, driven by initiatives like ONDC.
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