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Microsoft joins ONDC as the first global IT giant to do so.
Microsoft is the first major IT company on the government's open network for digital commerce (ONDC) platform.
The entrance is part of a strategy on the part of the American tech giant to popularise social e-commerce, often known as group buying, among Indian consumers.
Using the ONDC network, the business plans to release a shopping app for Indian customers and their social networks, allowing them to easily compare prices from various vendors.
According to T Koshy, managing director of ONDC, "by harnessing the strength of our open network users, Microsoft, too, can implement their unique concepts like social commerce fast."
He also stated that "joining hands with Microsoft is a tribute to our reputation to promote an open e-commerce environment with countless options" as the company lays the groundwork for a fair playing field for all industry stakeholders.
Analysts agree that this relationship has several benefits, including increased access to micro, small, and medium-sized businesses and clients in the middle market.
According to Sanchit Vir Gogia, CEO of Greyhound Research, "this move fits with Microsoft's goal and plan in a huge way." He further clarified that Microsoft is not planning to become an online shop but rather a provider of the "tech stack" that powers the industry.
Microsoft will be able to contact individuals in need of digitalization, sell its products and services at a much more accessible price point, and drive analytics based on the data it will collect through its app.
The Indian e-commerce market is projected to grow to $400 billion by 2030, expanding at a CAGR of 19%.
Since ONDC is predicated on the principles of decentralisation, openness, and increased user utility, it hopes to catalyse and speed up this process by allowing any and all consumers and sellers to take advantage of the digitalization of commerce through its network.
Since Satya Nadella took over as CEO, Microsoft has shifted its attention squarely on the needs of large businesses rather than the consumer market.
According to Gogia, ONDC is still in its infancy, and none of the already operational firms are tech stack suppliers like Microsoft.
Since a Microsoft spokeswoman put it, "the network is a win-win for both consumers and sellers as it will enable them to interact without dependence on any e-commerce solution." Microsoft also has plans to launch a new consumer app experience in the social commerce arena.
Customers in Bengaluru can now use ONDC-affiliated buyer applications to place orders for groceries and food from eateries as part of the Beta Test.
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