Quick commerce startup Dunzo made a significant announcement on Thursday (August 3), revealing that it has fully integrated its seller app with the Indian government-backed Open Network for Digital Commerce (ONDC). This integration has enabled 1,500 local merchants to join the network within just one week. Dunzo’s B2B logistics vertical, Dunzo For Business (D4B), has successfully integrated with ONDC, with plans to onboard an additional 20,000 merchants from various sectors such as food, grocery, pharmaceuticals, and more in the next 45 days.
Impressive Early Results on ONDC’s Network
Within less than two weeks of being live on the ONDC network, Dunzo has already achieved peak order volumes of over 3,000 a day for groceries and other essential items through its local merchants. Dalvir Suri, cofounder of Dunzo, shared with Business Standard that some merchants have experienced a remarkable three-fold increase in their daily orders since joining the network.
Government Discussions and ONDC’s Potential Impact
The announcement from Dunzo regarding its ONDC integration comes shortly after commerce minister Piyush Goyal held discussions with representatives from prominent ecommerce firms, including Flipkart, Amazon, Swiggy, Meesho, and Shiprocket. During the meeting, issues faced by the sector were addressed, and discussions were held about a list of national policies for the segment, which the government is expected to announce soon.
ONDC Integration Offers Revenue Boost Amid Financial Challenges
The integration with ONDC could serve as a significant revenue push for Dunzo, which is currently facing several financial challenges. The startup had to close a few dark stores last year and had to let go of nearly 3% of its workforce. While it secured $75 million through convertible notes to cope with the situation, it had to terminate 30% of its employees in April this year. Additionally, Dunzo has been seeking at least $20 million in additional funding from its largest shareholder, Reliance Retail. The company has also faced difficulties in paying salaries to its employees, with plans to release the salaries for June in September. Reportedly, the startup is contemplating further layoffs, with around 200 employees potentially affected.
ONDC Integration Aims to Drive Growth Amid Challenges
Despite the financial hurdles, Dunzo’s integration with ONDC demonstrates its commitment to driving growth and innovation in the quick commerce space. By leveraging the power of ONDC and welcoming more merchants into its network, Dunzo aims to enhance its offerings and cater to the diverse needs of consumers across various sectors. The startup’s focus on integrating technology and logistics to enable seamless and swift commerce experiences remains at the forefront of its mission, even in the face of challenges.
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