The Chennai-based SaaS giant backs India’s open commerce network as MSME digitisation picks up serious pace
India’s small businesses have long operated in the shadows of large digital platforms — limited reach, high commissions, and little control. Zoho Corporation is making a sizeable bet that there’s a better way.
The Chennai-based SaaS company has invested Rs 70 crore in ONDC (Open Network for Digital Commerce), signalling its commitment to building digital infrastructure that works for the country’s 63 million-plus MSMEs rather than around them.
Why Zoho Is Writing This Cheque
Zoho isn’t new to the MSME space. Products like Vikra, Zoho Books, Zoho Inventory, and Zoho Commerce already help small businesses digitise their operations and plug into the ONDC network. This investment deepens that alignment.
“India’s economy depends heavily on MSMEs, yet they face challenges on all fronts — from limited market access to structural constraints imposed by conventional digital platforms,” said Sivaramakrishnan Iswaran, CEO of Zoho Payment Technologies and Global Head of Finance and Operations.
The investment is framed around two goals: strengthening sovereign digital infrastructure and making ecommerce genuinely interoperable for businesses that have historically been priced out or locked out.
ONDC’s Momentum Is Hard to Ignore
Backed by the Department for Promotion of Industry and Internal Trade (DPIIT), ONDC is building an open, decentralised alternative to platform-dominated ecommerce. The numbers suggest it’s gaining real traction — the network processed 218 million transactions in FY26, while its DigiDukaan initiative onboarded over 10,000 kirana stores within months of launch. Order volumes for farmers, artisans, and rural sellers grew 11X in FY26.
Last month, ONDC also appointed Vibhor Jain as its new Managing Director and CEO, bringing leadership stability after a period of transition.
The Bigger Picture
Zoho’s move is more than a financial transaction. It reflects a broader philosophy the company has held for years — that technology infrastructure should empower small businesses, not extract from them. Paired with ONDC’s open-network model, this partnership could quietly reshape how millions of Indian sellers access digital commerce.
For more insights on India’s startup ecosystem, MSME growth, SaaS innovation, and funding activity, explore our latest startup news and investment updates.
Fact-checked by Malik Times Research
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