ONDC increases marketing costs to Rs 91.73 crore in FY24

ONDC shares discounting costs or incentives that the network participants such as Ola, Magicpin, Paytm, and others offer to their end buyers

By  Storyboard18Sep 23, 2024 4:55 PM
ONDC increases marketing costs to Rs 91.73 crore in FY24
ONDC invests heavily in marketing, over Rs 91 crore spent in FY24

The cost of 'marketing intervention' of government-backed Open Network for Digital Commerce (ONDC), including promotional campaigns has increased to Rs 91.73 crore in FY24, compared to Rs 3.27 crore in FY23, according to a report by Moneycontrol.

ONDC shares discounting costs or incentives that the network participants such as Ola, Magicpin, Paytm, and others offer to their end buyers.

Separately, ONDC has reduced the magnitude of its incentive payouts over the last few months.

As per the Moneycontrol report, ONDC has told its network players via memo that the maximum incentive each one claimed in October is Rs 40 lakh- an 84% decline from the maximum of Rs 2.5 crore.

The deficit of ONDC (term used for loss profit for non-profit companies) jumped from Rs 46.76 crore in FY23 to Rs 195.61 crore in FY24.

Citing a source, the report mentioned that the ONDC board is looking to devise a strategy to start earning revenues so that the network becomes self-sustainable.

ONDC raised Rs 569 crore from the issue of equity shares to RBL Bank and Canara Bank in FY24.

Several new-age firms such as Paytm, Ola, PhonePe, Meesho, Shiprocket, and Magicpin have taken to ONDC.

With ONDC, the government hopes to increase the penetration of e-commerce in the country, reaching a gross merchandise value of $48 billion.

First Published on Sep 23, 2024 4:55 PM

More from Storyboard18

Advertising

Navi Mumbai airport sells 70% of ad space before opening; Jewar follows close behind

Navi Mumbai airport sells 70% of ad space before opening; Jewar follows close behind

Digital

YouTube turns 20: 20 billion videos, 20 million daily uploads and a reinvention

YouTube turns 20: 20 billion videos, 20 million daily uploads and a reinvention

Digital

Apple to shift assembly of all US-sold iPhones to India by 2025

Apple to shift assembly of all US-sold iPhones to India by 2025

Advertising

UP govt plans to replace traditional hoardings with digital displays

UP govt plans to replace traditional hoardings with digital displays

Digital

Perplexity AI joins forces with Motorola to bring answer engine to smartphones

Perplexity AI joins forces with Motorola to bring answer engine to smartphones

Brand Makers

Rob Lake and the return of live spectacle in a digital world: The master of illusion in India

Rob Lake and the return of live spectacle in a digital world: The master of illusion in India

Brand Marketing

Zerodha’s Nithin Kamath raises alarm over apps misusing user data without consent

Zerodha’s Nithin Kamath raises alarm over apps misusing user data without consent

Digital

Alphabet Q1 2025: Google's ad revenue growth slows, hits $66.89 billion in the quarter

Alphabet Q1 2025: Google's ad revenue growth slows, hits $66.89 billion in the quarter