Zoho Invests Rs 700 Million in ONDC to Boost MSME Digitisation

21 May 2026 CW Team

Sivaramakrishnan Iswaran, chief executive of Zoho Payment Technologies and global head of the finance and operations business unit at Zoho, described India's economy as heavily dependent on MSMEs, which face challenges from limited market access and structural constraints imposed by conventional digital platforms. He indicated that ONDC provides a mechanism to restore agency to small sellers, enabling them to expand customer reach and pursue sustainable growth. He added that the private sector should play a role in nation building by supporting such initiatives.

ONDC is developing an open digital commerce network intended to improve interoperability and to reduce barriers for businesses entering online markets, and the platform reported it enabled 218 mn transactions in FY 2025-26. Zoho has been working with micro, small and medium enterprises through products including Vikra, Zoho Books, Zoho Inventory and Zoho Commerce to help businesses connect with buyers via the ONDC network. The company expects the investment to support onboarding, tooling and integration that can lower entry costs for sellers.

Beyond retail, ONDC initiatives have sought to broaden participation through targeted programmes such as DigiDukaan, which has onboarded more than 10,000 kirana stores within months of launch, and through efforts aimed at farmers, artisans and rural sellers. Commerce involving these groups reportedly grew 11 times during FY 2025-26, a trend the network cites as evidence of wider uptake. Industry observers noted that combining platform infrastructure with vendor-facing tools could accelerate digitisation across underserved segments.

Zoho Corporation has invested Rs 700 million (mn) in the Open Network for Digital Commerce to support the development of sovereign technology and to strengthen digital commerce access for small businesses in India. The company said the investment is intended to expand the ONDC ecosystem and encourage more micro, small and medium enterprises to adopt digital platforms. The move aligns with Zoho's stated focus on accessibility, inclusion and technology tailored for Indian businesses. Sivaramakrishnan Iswaran, chief executive of Zoho Payment Technologies and global head of the finance and operations business unit at Zoho, described India's economy as heavily dependent on MSMEs, which face challenges from limited market access and structural constraints imposed by conventional digital platforms. He indicated that ONDC provides a mechanism to restore agency to small sellers, enabling them to expand customer reach and pursue sustainable growth. He added that the private sector should play a role in nation building by supporting such initiatives. ONDC is developing an open digital commerce network intended to improve interoperability and to reduce barriers for businesses entering online markets, and the platform reported it enabled 218 mn transactions in FY 2025-26. Zoho has been working with micro, small and medium enterprises through products including Vikra, Zoho Books, Zoho Inventory and Zoho Commerce to help businesses connect with buyers via the ONDC network. The company expects the investment to support onboarding, tooling and integration that can lower entry costs for sellers. Beyond retail, ONDC initiatives have sought to broaden participation through targeted programmes such as DigiDukaan, which has onboarded more than 10,000 kirana stores within months of launch, and through efforts aimed at farmers, artisans and rural sellers. Commerce involving these groups reportedly grew 11 times during FY 2025-26, a trend the network cites as evidence of wider uptake. Industry observers noted that combining platform infrastructure with vendor-facing tools could accelerate digitisation across underserved segments.

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