ONDC Raises ₹220 Cr From Uber, Zoho, Paytm

The Open Network for Digital Commerce (ONDC) has raised ₹220 Cr ($23.1 Mn) from four strategic investors, including Uber, Zoho, Paytm-parent One97 Communications and BSE.

According to a board resolution passed on May 12, 2026, ONDC allotted 2.2 Cr equity shares with a face value of ₹100 each on a private placement basis to the aforementioned investors. Zoho emerged as the largest investor in the round, infusing ₹70 Cr. While Uber India and Paytm invested ₹60 Cr each, BSE infused ₹30 Cr.

In a post on LinkedIn, ONDC’s CFO Krishan Agarwal said that the investment represents further amplification  in the conviction that open digital networks are fundamentally reshaping how commerce is conducted in India by creating a level playing field for businesses.

“As we continue our broader fund raise programme, the participation of such respected organisations is a meaningful validation of both the progress achieved so far and the long-term potential of the network,” he noted.

The fund raise comes at a time when the government-backed network is looking to deepen industry participation and expand its digital commerce infrastructure.

ONDC was incorporated as a Section 8 company in December 2021, with the Quality Council of India (QCI) and Protean eGov Technologies as its founding members. It enables interoperability between buyer and seller applications, allowing any buyer app to transact with any seller on the network regardless of the platform they use.

Over the past few years, ONDC has expanded beyond retail ecommerce into segments such as mobility, logistics and financial services. The network claims to have facilitated 21.8 Cr transactions across these categories during FY26. It is currently operational in 616 cities and has onboarded more than 7.64 Lakh sellers and service providers.

Among the investors, Zoho’s backing builds on an existing partnership between the SaaS major and ONDC. The company has integrated several of its products, including Vikra, Zoho ERP, Zoho Books, Zoho Inventory and Zoho Commerce, with the network to help MSMEs digitise operations, manage inventory, streamline accounting and access customers through ONDC-enabled channels.

Uber, meanwhile, described it as one of the earliest strategic investments by a global technology company in ONDC. 

The ride-hailing major said the investment deepens its commitment to India’s DPI stack and follows its earlier integrations with the network. In December 2025, Uber partnered with ONDC to foray into B2B logistics and expand its B2C portfolio by initiating metro ticket bookings via the platform.

The investment round also adds to ONDC’s growing roster of strategic and institutional backers. Other ONDC backers include Kotak Mahindra Bank, Axis Bank, SIDBI and ICICI Bank.

Notably, while the network has continued to broaden its reach across sectors, retail transaction volumes have faced pressure over the past year amid intense competition from well-funded ecommerce and quick commerce players. 

Meanwhile, the network has continued to push adoption among kirana stores, farmers, artisans and rural sellers, while also strengthening its logistics ecosystem through partnerships with players such as Delhivery, Shadowfax, Loadshare, Porter and Amazon Logistics.

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