Google to launch an accelerator program for government-backed ONDC

The accelerator program entails Google offering its core infrastructure application programming interfaces (APIs) to ONDC participants as an open-source solution. Moreover, Google plans to provide retail search and generative AI to enrich the buyer and seller experiences on the network. To further support ONDC participants, Google is introducing an ONDC startup credits program, enabling them to apply for grants of up to $25,000. Additionally, Google promises enhanced serviceability of ONDC orders by leveraging address descriptors on Google Maps.

During a developer conference in Bengaluru, Ambarish Kenghe, the vice president of Google Pay, made an intriguing announcement. Google is all set to launch an accelerator program for the government-backed Open Network for Digital Commerce (ONDC). 

This move aims to foster the growth of India’s thriving network of digital sellers, as emphasized by Kenghe. Google’s commitment to empowering India’s digital ecosystem through innovative technologies and capabilities is commendable.

The accelerator program entails Google offering its core infrastructure application programming interfaces (APIs) to ONDC participants as an open source solution. Moreover, Google plans to provide retail search and generative AI to enrich the buyer and seller experiences on the network. 

To further support ONDC participants, Google is introducing an ONDC startup credits program, enabling them to apply for grants of up to $25,000. Additionally, Google promises enhanced serviceability of ONDC orders by leveraging address descriptors on Google Maps.

ONDC, a private non-profit organization supported by the Department for Promotion of Industry and Internal Trade (DPIIT), strives to democratize e-commerce and expand its reach in India. 

Last year, ONDC embarked on a soft launch in five cities, including Delhi NCR, Bengaluru, Bhopal, Shillong, and Coimbatore, under the government’s guidance. Subsequently, in September, ONDC opened the platform to the public in Bengaluru and gradually brought aboard several key players to scale the network.

Notably, FMCG company Marico has integrated its Saffola Store with the ONDC platform, while other major players such as Paytm, PhonePe, Delhivery, Shiprocket, Dunzo, and Snapdeal have also integrated their services. Recent media reports suggest that ONDC may soon venture into the financial products and services segment. This development has led some industry experts to speculate that ONDC could potentially challenge the duopoly of Swiggy and Zomato in the Indian food delivery market.

While ONDC, in its current form, may not pose a significant threat to Swiggy and Zomato, research analysts believe that its future scaling could pose long-term risks. In a remarkable feat, ONDC announced a 500X increase in daily transactions, soaring from a mere 50 in January to 25,000 orders in the first week of May.