ONDC's DigiDukaan initiative has connected over 21,000 retailers with more than 450 brands across Hyderabad, Jaipur and Mumbai as of September 2026, marking a significant expansion of its efforts to digitise India's neighbourhood retail ecosystem.The initiative, which enables kirana stores to procure products digitally, has seen retailer onboarding increase from over 12,000 in the previous quarter. It aims to improve procurement, strengthen existing distribution networks and enhance supply-chain efficiency across India's General Trade ecosystem.
Hyderabad accounts for more than 16,000 onboarded retailers, with monthly repeat ordering rates ranging between 73% and 78%. An initial retailer study by the Open Network for Digital Commerce (ONDC) also found that 40% of surveyed retailers reported lower inventory holdings for products procured through DigiDukaan, indicating potential improvements in working capital efficiency, according to a Ministry of Commerce and Industry press release.The initiative's progress was discussed at the Bharat Commerce Chintan Shivir, a high-level CEO roundtable chaired by Union Commerce and Industry Minister Piyush Goyal at Vanijya Bhawan in New Delhi on Saturday.Convened by the Department for Promotion of Industry and Internal Trade (DPIIT) and ONDC, the roundtable brought together over 40 industry leaders from major fast-moving consumer goods (FMCG) companies to discuss a common roadmap for strengthening and digitising India's General Trade ecosystem.
Addressing the meeting, Goyal said DigiDukaan demonstrated how open digital infrastructure designed around the needs of small retailers could encourage wider adoption.He called on FMCG companies to work together to expand the initiative across the country, saying digital procurement could make purchasing simpler and more transparent, strengthen distributors and help kirana stores free up working capital.
Chaired the Consumer Packaged Goods (CPG) Roundtable under the Bharat Commerce Chintan Shivir to discuss strengthening India's general trade ecosystem through @ONDC_Official's DigiDukaan initiative. Deliberated on expanding digital technology adoption among Kirana retailers, enhancing market access & improving supply chain efficiency. Emphasised the importance of fostering collaboration among industry stakeholders to build an inclusive, sustainable & digitally empowered retail ecosystem.
— Piyush Goyal (@PiyushGoyal) October 31, 2026
DPIIT Secretary Amardeep Singh Bhatia said open digital infrastructure could play an important role in accelerating the digitalisation of India's retail ecosystem, particularly its vast network of kirana stores.He said DigiDukaan was enabling neighbourhood retailers to access digital procurement opportunities by bringing retailers, FMCG companies and distributors onto a common interoperable network.
The discussions focused on five key areas, including a common digital identity for kirana retailers to enable seamless engagement with multiple brands, distributors and service providers, according to government agency.Participants also discussed shared logistics and micro-warehousing infrastructure to improve distributor reach and ensure reliable next-day replenishment, including in areas beyond existing delivery networks.Expanding access to formal credit through digital procurement and transaction records was another priority, along with simplified technology integration through standardised catalogues, common digital interfaces and Distributor Management System (DMS) connectors.The fifth area focused on commercial incentives for FMCG companies, sales teams, distributors and channel partners to encourage digital ordering, wider retail coverage and sustained retailer adoption.
DigiDukaan to strengthen existing distribution networks
ONDC DigiDukaan enables kirana retailers to discover and order products from multiple brands, distributors and wholesalers through a single digital interface. It also provides greater visibility into pricing, trade schemes and product availability.The initiative is designed to strengthen existing distribution relationships rather than replace them, while creating opportunities for retailers to access shared logistics, formal credit and other services.ONDC Managing Director and CEO Vibhor Jain said that while distributors had increasingly adopted digital tools for billing and order placement, many neighbourhood retailers continued to rely on traditional methods.He said DigiDukaan aims to digitise kiranas as buyers while strengthening the existing distributor network.
Several major FMCG companies, including Hindustan Unilever, Marico, Colgate-Palmolive, Emami and Amul, are participating through their distribution networks. ITC, Tata Consumer Products and Britannia are at various stages of integration or discussions.Technology partners such as Paytm for Business, Qwipo and Mulltiply.ai are already live on the network, while Bizom, Botree, QuIDPe and ENS are progressing towards integration.Logistics and warehousing partners, including ElasticRun, Shiprocket, India Post and Moeving, are also part of the initiative to support procurement, wider distributor reach and faster replenishment.As part of its next phase, ONDC is focusing on expanding brand and distributor participation in Mumbai, particularly North Mumbai, while strengthening operations in existing markets.The National Traders' Welfare Board (NTWB), chaired by Sunil J. Singhi, is also working with ONDC to accelerate DigiDukaan adoption by mobilising local trade associations and encouraging greater participation among kirana retailers.
ONDC has enabled over 500 million transactions to date across its digital commerce network. Its initiatives span retail, logistics, public transport, tourism and financial services, with the aim of improving market access and reducing entry barriers for small businesses and consumers.
(Business Correspondent)
Ira Singh
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