The Open Network for Digital Commerce (ONDC) has officially made its entry into the mutual fund space, facilitating its first-ever transaction in partnership with Nippon India Mutual Fund.
The move is part of ONDC’s broader strategy to expand its presence in the financial services sector and democratise access to investment products across India.
The launch of mutual funds comes after the company, on 22 August, debuted into the lending service, offering digital and paperless loans that could be processed in just six minutes to both salaried and self-employed individuals, through its network of nine service providers and three lenders. These loan offerings are available to both salaried and self-employed individuals.
ONDC, initially established by the government to drive e-commerce penetration, is now diversifying its services to include a full range of financial products.
The network also plans to introduce insurance in the near future, further expanding its offerings, Hrushikesh Mehta, Senior Vice President- Financial Services had previously told Moneycontrol.
Mehta shared that the network’s vision includes launching a full suite of both B2B and B2C financial services, ranging from mutual funds, insurance, and credit cards to more unique offerings like crop yield financing and cow financing.
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"Next, we aim to introduce purchase financing and B2B credit for working capital. If we can also bring credit cards into the mix, that completes the full suite of credit offerings. Our goal is to deploy all these within the next 12 to 18 months," Mehta said during a recent media interaction in Mumbai.
Mutual fund foray
ONDC began piloting its financial services, including credit, insurance, and mutual funds, with select partners earlier this year. The mutual fund expansion marks a significant step in these efforts, bringing new opportunities for financial inclusion to regions traditionally underserved by investment products.
"75% of mutual fund AUM sits in the top 30 cities in India. Our goal is to shift this balance as we drive mutual fund product adoption outside of these cities. It has taken us 18 months but we have taken the first step to doing our part in changing our nation from savers to investors!," Mehta shared in a post.
Mehta also acknowledged Appreciate, a Mumbai-based investment platform, and Nippon India Mutual Fund for being the first to launch on ONDC’s mutual fund offering. He further shared that ATX Labs, ONDC’s technology service provider specializing in AI and data services, and AssetPlus, a wealth management app, will soon join as buyer apps, with more Asset Management Companies (AMCs) in the pipeline.
"A huge thanks to Appreciate and Nippon India Mutual Fund for being the first out of the gate. ATX Labs and AssetPlus coming as buyer apps soon! Lots more AMCs in the pipeline!," he added.
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