The SaaS giant’s multi-million dollar investment aims to democratize e-commerce by building “sovereign technology” that shifts power from big tech back to small businesses.
In a move that could significantly alter the DNA of Indian e-commerce, Chennai-headquartered SaaS powerhouse Zoho Corporation has announced a strategic investment of ₹70 crore (approx. $7.3 million) into the Open Network for Digital Commerce (ONDC).
While Zoho is globally recognized for its massive suite of business software, this investment is deeply personal. It isn’t just about capital; it’s about a shared philosophy. Both Zoho and ONDC are championing the cause of “sovereign technology”—digital infrastructure that belongs to the public interest rather than being locked behind the “walled gardens” of global tech giants.
Empowering the Backbone of Bharat
For years, Micro, Small, and Medium Enterprises (MSMEs) have been the silent engine of the Indian economy, yet they often find themselves squeezed by the high commissions and rigid algorithms of traditional e-commerce platforms.
Sivaramakrishnan Iswaran, CEO of Zoho Payment Technologies, put it bluntly:
“India’s economy depends heavily on MSMEs, yet they face challenges on all fronts—from limited market access to structural constraints. ONDC gives power back to MSMEs, enabling them to expand their customer reach and achieve sustainable growth.”
More Than Just a Check: A Full-Stack Integration
Zoho isn’t entering this partnership as a silent spectator. The company has already deeply integrated its most popular tools with the ONDC ecosystem to help merchants go digital overnight:
- Vikra: A dedicated seller app built specifically for the ONDC network.
- Zoho Books & Inventory: Allowing small shopkeepers to sync their physical stock with digital orders seamlessly.
- Zoho Commerce & ERP: Providing the “big business” tech stack to small-scale entrepreneurs.
The ONDC Momentum
The investment comes at a time when ONDC is proving it’s more than just a government experiment. In the 2025–26 fiscal year, the network enabled a staggering 218 million transactions. From onboarding 10,000+ kirana stores through its DigiDukaan initiative to seeing an 11-fold growth in orders for rural artisans and farmers, the network is finally bringing the “Bharat” market online.
By backing ONDC, Zoho is essentially helping build the “digital rails” of the future—ones where a local weaver in Kanchipuram or a spice vendor in Kerala can sell to a customer in Delhi without being at the mercy of a predatory platform.
As ONDC continues to expand into logistics, mobility, and financial services, Zoho’s ₹70 crore infusion serves as a loud message to the industry: the future of commerce in India isn’t just digital—it’s open.
