---
title: "What Is ONDC? India's Open Commerce Network Explained"
description: "What ONDC is, who runs it, how buyer and seller apps connect on the network, and what it changes for shops and shoppers in India."
url: "https://bharat.digital/explainers/what-is-ondc/index.md"
canonical: "https://bharat.digital/explainers/what-is-ondc/"
updated: "2026-11-02T08:30:14+05:30"
language: "en-IN"
site: "bharat.digital"
---

A bharat.digital explainer

# What ONDC is

An open network for digital commerce: why a shopper on one app can buy from a seller on another.

The Open Network for Digital Commerce (ONDC) is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) in the Ministry of Commerce. It is not a shopping app or a marketplace. It is a set of open rules and technical specifications that let separate apps talk to each other, so that a buyer using one app can find and order from a seller who listed on a completely different one.

## Who runs it

ONDC was incorporated as a not for profit, Section 8 company and was incubated at the Quality Council of India, which was joined by Protean as a co-founder. Public and private banks and financial institutions have taken equity in it. The network went live in April 2022.

## How it works

Today most online shopping happens inside closed platforms: the buyer, the seller, the catalogue and the delivery all sit with one company. ONDC splits those roles. On the network there are:

- **Buyer applications,** where customers search and order.
- **Seller applications,** where businesses list products and manage orders.
- **Logistics providers,** who handle delivery.
- **Technology service providers,** who help others connect.

Every participant follows the same open protocol, based on the Beckn specification, for search, ordering, payment, fulfilment and grievances. ONDC itself does not own or operate any of these services; it sets the standards and maintains the registry of participants.

## Why it matters

For a small business, the promise is reach without being locked to one platform's fees and rules: list once with a seller app and be discoverable through every buyer app on the network. For buyers it means more choice. The network started with food and grocery and has expanded to areas including mobility, fashion, electronics, financial services and agriculture.

## What to watch

Open networks only work if buyers and sellers actually use them. Useful signals are how many orders come from outside the early food delivery and mobility categories, how disputes and returns are handled across separate apps, and whether seller apps make onboarding easy for businesses that have never sold online.

## Sources

1. [PIB, Digital commerce reimagined for inclusivity and innovation (ONDC), 4 January 2025](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2090097)
2. [ONDC, About us](https://ondc.org/pages/about-us.html)
3. [ONDC, technical resources for network participants](https://resources.ondc.org/tech-resources)
4. [ONDC](https://ondc.org/)

Last reviewed 29 October 2026. Written by bharat.digital from the official sources above.