NSDL buys 5.6% stake in government’s e-commerce project ONDC

Tags: Economy/Finance

India’s first depository company National Securities and Depositories Limited (NDSL) has announced on 12 October 2022 that it has bought 5.6 per cent stake in the Government of India backed Open Network for Digital Commerce (ONDC) for Rs 10 crore.

ONDC started its live beta testing on 30 September 2022 across 16 pin codes in Bengaluru, Karnataka. 

National Securities Depository Limited (NSDL) invested an amount of Rs 10 crore in ONDC under the private placement route. Private placement means the shares were sold directly to the NSDL by the ONDC Company and it was not offered to the public.

ONDC was set up by the Union Commerce and Industry Ministry in 2022 to develop an open network for e-commerce in India. It is an ecommerce platform built by the government of India to enable the small kirana stores to access processes and technologies that are typically deployed by large e-commerce platforms such as Amazon and Flipkart.

Last month, state-owned Bank of India acquired over 5.5 per cent stake in ONDC for Rs 10 crore.  Apart from Bank of India, many companies like Microsoft, Paytm, HDFC Bank, Kotak Mahindra Bank and Axis Bank, Punjab National Bank, State Bank of India, Phone Pe and others have invested in the project.