The cost of ‘marketing intervention’ of government-backed Open Network for Digital Commerce (ONDC), including promotional campaigns has increased to Rs 91.73 crore in FY24, compared to Rs 3.27 crore in FY23, according to a report by Moneycontrol.
ONDC shares discounting costs or incentives that the network participants such as Ola, Magicpin, Paytm, and others offer to their end buyers.
Separately, ONDC has reduced the magnitude of its incentive payouts over the last few months.
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As per the Moneycontrol report, ONDC has told its network players via memo that the maximum incentive each one claimed in October is Rs 40 lakh- an 84% decline from the maximum of Rs 2.5 crore.
The deficit of ONDC (term used for loss profit for non-profit companies) jumped from Rs 46.76 crore in FY23 to Rs 195.61 crore in FY24.
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Citing a source, the report mentioned that the ONDC board is looking to devise a strategy to start earning revenues so that the network becomes self-sustainable.
ONDC raised Rs 569 crore from the issue of equity shares to RBL Bank and Canara Bank in FY24.
Several new-age firms such as Paytm, Ola, PhonePe, Meesho, Shiprocket, and Magicpin have taken to ONDC.
With ONDC, the government hopes to increase the penetration of e-commerce in the country, reaching a gross merchandise value of $48 billion.