5 April 2024 – Pai Platforms, backed by Paytm founder Vijay Shekhar Sharma, has unveiled a new shopping app on the Open Network for Digital Commerce (ONDC), marking a strategic move to expand its presence in the e-commerce landscape. This development underscores the growing significance of ONDC as a platform for fostering competition and innovation in India’s online retail sector.
The introduction of the ‘PaiPai’ app on ONDC by Pai Platforms signals a notable shift in Paytm’s approach towards e-commerce. While Paytm itself does not hold any stake in Pai Platforms, the app’s development by Paytm’s parent company, One97 Communications, reflects a concerted effort to leverage ONDC’s potential in driving digital commerce.
The launch of PaiPai comes on the heels of Paytm E-commerce Private Limited’s rebranding as Pai Platforms and its acquisition of Bitsila, a seller-side platform on ONDC, earlier this year. This strategic realignment underscores Paytm’s commitment to establishing a distinct identity for its fintech and e-commerce ventures.
Paytm’s foray into the ONDC ecosystem aligns with its long-term vision of democratizing e-commerce and empowering merchants across India. Vijay Shekhar Sharma’s pledge to onboard 10 million merchants on ONDC by 2025 underscores the company’s ambitious growth targets in the digital commerce space.
The renewed focus on ONDC reflects the changing dynamics of India’s e-commerce landscape, with tech companies recognizing the platform’s potential to disrupt the dominance of established players like Amazon and Flipkart. The surge in retail purchases on ONDC, growing sixfold in the last six months to reach 3.6 million in March, underscores the platform’s rising prominence in facilitating online transactions.
As ONDC gains traction, the government’s ambitious goal of achieving a 25% e-commerce penetration rate and a gross merchandise value of $48 billion underscores the transformative potential of digital commerce in India.
