ONDC’s rapid expansion is being significantly powered by micro, small, and medium enterprises (MSMEs), which now account for over 65% of the total seller base on the network. This trend highlights ONDC’s core mission of democratizing digital commerce and enabling businesses of all sizes to participate in India’s online economy.
Date: February 2026
ONDC’s rapid expansion is being significantly powered by micro, small, and medium enterprises (MSMEs), which now account for over 65% of the total seller base on the network. This trend highlights ONDC’s core mission of democratizing digital commerce and enabling businesses of all sizes to participate in India’s online economy.
One of the most notable developments is the surge in adoption from Tier 2 and Tier 3 cities, which now contribute approximately 55% of total transactions on the network. Regions such as Uttar Pradesh, Maharashtra, Tamil Nadu, Karnataka, and Rajasthan have emerged as key growth hubs, driven by increasing internet penetration and digital literacy.
For MSMEs, ONDC offers a compelling value proposition. Traditional marketplaces often charge commissions ranging from 15% to 30%, significantly impacting profitability. In contrast, ONDC’s open network model minimizes these costs, allowing businesses to retain a larger share of their revenue.
Additionally, sellers on ONDC have reported a 30–50% increase in customer reach within the first few months of onboarding. This is largely due to the network’s ability to connect sellers with multiple buyer applications simultaneously, eliminating the need to depend on a single platform for visibility.
Government initiatives and ecosystem enablers are also playing a crucial role in accelerating adoption. Training programs, digital onboarding support, and logistics integrations are helping MSMEs overcome traditional barriers to entry. Several state governments and industry bodies have partnered with ONDC to promote awareness and facilitate onboarding at scale.
Another important factor is the flexibility offered by ONDC in terms of pricing, promotions, and customer engagement. Sellers are not bound by rigid platform policies, allowing them to experiment with different strategies and optimize their offerings based on market demand.
As India’s eCommerce market continues to grow, MSMEs are expected to play a central role in driving future expansion. ONDC’s inclusive approach is not only enabling these businesses to scale but also contributing to the formalization of the retail sector, making it more transparent and efficient.
Costbo is the most popular ONDC seller platform designed to help businesses easily connect with the ONDC network and start selling across multiple buyer applications.
With Costbo, sellers can:
Costbo aims to simplify digital commerce for sellers by providing a user-friendly ONDC seller app and platform infrastructure.
