ONDC launches B2B ecommerce, SignCatch and Rapidor join network

The two retail tech companies had executed their first B2B transaction on the network last month within a closed group of network players in Bengaluru. The new foray of ONDC will enable micro, small and medium enterprises to utilise the network to conduct B2B transactions.

The network’s entry into B2B ecommerce has come at a time when its B2C transactions are dwindling in the backdrop of ONDC restricting its terms for incentives to network partners for funding discounts to users.

“By fostering seamless connectivity and digital transformation, ONDC empowers businesses to overcome these hurdles (of limited credit access, high logistics costs, etc) and embrace the advantages of B2B commerce. Leveraging the open network, businesses can expand their reach, forge new partnerships, and tap into previously untapped markets,” ONDC said in a statement.

“This transition further allows them to move away from their predominantly offline operations and unlock new opportunities for growth and success,” it added.

While SignCatch licences its platform-as-a-service (PaaS) solutions to brands, distributors, retailers, Kochi-based Rapidor is a platform that enables B2B trade and transactions in closed loop networks.

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The entry into the new segment means that ONDC will start offering services that compete with B2B players such as Udaan, Amazon Business, IndiaMart, Dealshare, Jumbotail and others. ONDC has enabled features such as dynamic pricing, bulk order purchasing, delivery scheduling, and embedded finance in the form of B2B credit on its new offering.According to a report by consumer internet consultancy firm RedSeer, the B2B ecommerce market is projected to reach $90-100 billion in gross merchandise value (GMV) by 2030. The report states that the B2B general trade opportunity is expected to reach $1.2 trillion in size by 2030.

Typically, B2B commerce players offer a multitude of services from access to supply chain credit, logistics, etc on their platforms. “With the launch of the B2B-enabled open network, we are ushering in a new era of e-commerce where businesses can thrive online, overcoming the challenges that have held them back,” ONDC chief executive Thampy Koshy said.

Last week, ONDC announced a revised incentive scheme introducing limits on discounting. The move had come amid ONDC’s plan to eventually withdraw discounts and incentives in a phased manner.