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

Digital

OpenAI CEO amazed by India’s AI adoption, calls it 'incredible to watch'

OpenAI CEO amazed by India’s AI adoption, calls it 'incredible to watch'

Digital

Meta launches Instagram 'Teen Accounts' in India with extra safeguards

Meta launches Instagram 'Teen Accounts' in India with extra safeguards

Digital

Mumbai Police issue third summons to Kunal Kamra, ask him to appear on April 5

Mumbai Police issue third summons to Kunal Kamra, ask him to appear on April 5

Digital

CBI must work with startups to combat AI-driven crimes, says Vaishnaw

CBI must work with startups to combat AI-driven crimes, says Vaishnaw

Gaming

Quick Commerce or Quick cash? Zepto’s promotion of illegal betting firm Parimatch

Quick Commerce or Quick cash? Zepto’s promotion of illegal betting firm Parimatch

Digital

No relief for Ranveer Allahbadia as Supreme Court refuses to return his passport, extends protection from arrest

No relief for Ranveer Allahbadia as Supreme Court refuses to return his passport, extends protection from arrest

Brand Marketing

Google to pay $100 million to settle 14-year-old ad lawsuit

Google to pay $100 million to settle 14-year-old ad lawsuit

Special Coverage

WPP drops DEI language amid U.S. scrutiny, while Ogilvy global CEO champions representation and purpose

WPP drops DEI language amid U.S. scrutiny, while Ogilvy global CEO champions representation and purpose