What is ONDC? A Simple Guide for Indian MSMEs
ONDC क्या है? आसान भाषा में समझिए।
By Team XphoraAI · 11 July 2026 · 6 min read
ONDC (Open Network for Digital Commerce) is a government-backed open network, incubated by DPIIT in 2021, that lets any seller reach buyers on any participating app — instead of being locked into one marketplace. Your shop is listed once through a seller app, and customers on every buyer app in the network can find and order from you. For India's 6-crore-plus MSMEs, it means online reach without marketplace lock-in.
ONDC in one sentence
The Open Network for Digital Commerce (ONDC) is an open, interoperable network for buying and selling online, incubated by the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, in 2021.
Think of it the way UPI changed payments: before UPI, your money lived inside one wallet app. After UPI, any bank app could pay any other. ONDC does the same for commerce — a customer on one buyer app can order from a seller listed on a completely different seller app, because both speak the same open protocol.
How is ONDC different from a marketplace?
On a marketplace, the platform owns the customer, sets the commission, and controls your visibility. If you leave, you start from zero. On ONDC, your catalogue lives with a seller app of your choice (called a Seller Network Participant, or SNP), and every buyer app on the network can surface your products.
- One listing, many storefronts — your products appear across all buyer apps on the network.
- Choice of seller app — you pick the SNP whose commission, language support and onboarding help suit you.
- Portability — your business identity is not trapped inside a single platform.
- Level playing field — a kirana in Moradabad and a national brand use the same open protocol.
Why it matters for MSMEs specifically
India has over 6 crore registered MSMEs, and the sector contributes roughly 30% of GDP according to the Ministry of MSME — yet only a small fraction sell online today. The two biggest blockers are onboarding friction (forms, documents, English-only flows) and the fear of marketplace dependence.
ONDC removes the second blocker by design. Tools like MSMEMate remove the first: voice-first registration in your own language, automatic reading of your Udyam certificate, and AI that places your products in the right ONDC category so buyers can actually find them.
What you need before joining
You do not need a website, a developer, or English paperwork. In most cases you need:
- A Udyam registration number (free at udyamregistration.gov.in — Aadhaar is enough to start).
- A short description of what you make or sell — even spoken in Hindi, Tamil, Bengali or another Indian language.
- Basic KYC documents when your chosen seller app asks (PAN, GST where applicable).
- A product list — the Excel or CSV file you already keep works.
Frequently asked questions
Is ONDC a government app I can download?
No. ONDC is a network, not an app. You join it through a seller app (Seller Network Participant), and customers reach you through any buyer app connected to the network. The network protocol is open and was incubated by DPIIT, Government of India.
Does joining ONDC cost money?
The network itself does not charge sellers a membership fee. Individual seller apps set their own commissions and service charges, which is why choosing the right seller app for your category and region matters.
Do I need GST to sell on ONDC?
It depends on your category and turnover. Many small sellers below the GST threshold can onboard with just Udyam and PAN details, while some categories require GST registration. Your seller app will confirm during KYC.
Can I sell in my own language?
Yes. Buyer apps serve customers in multiple Indian languages, and onboarding tools like MSMEMate let you register and describe your business by voice in Hindi, Tamil, Telugu, Bengali, Marathi, Gujarati and more.
Take the first step today
Register your MSME by voice — free, in your language, DPDP-compliant.