THURSDAY, 20 AUGUST 2026

Platforms

ONDC had a quiet year. That might be the good news.

The protocol did not kill Amazon. It also did not die. India's public digital commerce layer is settling into the unglamorous job: being a pipe some apps use.

Rhea Kapoor, Platforms & SaaS·11 August 2026·6 min read

Overhead view of a wholesale mandi
Overhead view of a wholesale mandi

ONDC was supposed to be the plot twist: a network protocol that separated buyer apps from seller apps and cut the 15–25% marketplace tax. The twist, in 2026, is more modest. Some buyer apps use it. Most shoppers do not know the name. That is how infrastructure wins.

Protocols do not get launch events after year three. They get integration tickets. PhonePe's Pincode, Paytm, Magicpin, and a scatter of public-sector and state buyer apps are the actual distribution. Seller-side, the work is catalog quality, logistics promise, and the unsolved problem of "who does the customer shout at."

Marketplaces still tax, still advertise, still convert. They also still have the complaint desk. ONDC's original sin, if it had one, was implying that a protocol could replace a product. It cannot. It can make a second product cheaper to start. That is a real gift to someone who is not Flipkart.

ONDC's original sin was implying that a protocol could replace a product.

The useful comparison is UPI, which everyone reaches for and which is only half-right. UPI had a consumer pull (it was free and it worked at the tea stall). ONDC has a policy push and a merchant grievance. Until a buyer app makes "search across the network" feel as dumb-simple as a QR scan, ONDC remains a B2B choice.

That is allowed. India does not need another consumer brand. It needs a way for a Jaipur seller to be found without paying for a Bangalore company's TV ad. If ONDC is that pipe for even a slice of grocery, mobility, or retail, the quiet year was the point.

Do not write the obituary. Do not write the revolution either. Write the API changelog.

The unglamorous stack: marketplaces, ONDC, billing, OMS, and mid-market software.

Filed under Platforms

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