Reliance Industries Ltd’s retail arm, Reliance Retail, has launched a pilot programme on the government-backed Open Network for Digital Commerce (ONDC) through Fynd, an omnichannel retail platform in which Reliance has an investment. According to the Economic Times, this pilot involves one Reliance Retail store, Shri Kannan Departmental Store in Madurai, Tamil Nadu, which Reliance Retail acquired in December 2021 for Rs 152.5 crore. This store is now live on the seller side of ONDC through Fynd.
This initiative is part of a broader strategy to test the waters before potentially expanding the programme. Sources indicate that if the initial pilot proves successful, Reliance Retail plans to scale up to five stores and eventually to 100 stores on ONDC. Gradually, all brands owned by Reliance Retail could go live on the network, significantly boosting ONDC’s consumer adoption. This pilot marks a significant step as Reliance Retail explores the potential of the ONDC platform to expand its digital footprint and streamline its e-commerce operations through Fynd.
Fynd, founded in 2012 by Farooq Adam, Harsh Shah, and Sreeraman MG, is an omnichannel fashion platform that sells products across various categories, including clothing, footwear, jewellery, and accessories from prominent brands in India. Fynd helps small and medium-sized businesses go online by listing their inventory on multiple e-commerce platforms like Amazon and Nykaa and assists these businesses with last-mile logistics delivery. The Mumbai-based startup optimises delivery times by sourcing products from outlets nearest to the customer. Reliance Industries Limited acquired an 87.6% stake in Fynd in 2019 for INR 295 Cr (about $42.33 Mn).
Reliance’s quick-commerce subsidiary, Dunzo, initially went live on ONDC during its beta launch in Bengaluru in September 2022 but has been inactive as a logistics service provider since April 2023. Meanwhile, Fynd, servicing over 15,000 pin codes, launched its seller app on ONDC in February 2023 and plans to launch its buyer app in the second quarter of 2025. With Reliance Retail’s participation, ONDC could see a significant increase in consumer engagement and transactions, further solidifying its role in India’s digital commerce landscape.
Reliance Retail reported a turnover of Rs 306,786 crore for the financial year 2023-24 and operated 18,836 stores with over 1.06 billion footfalls as of March 31, 2024. The company’s sectors include grocery, consumer electronics, fashion and lifestyle, and pharma under various brands. The pilot programme’s success could potentially transform the e-commerce landscape in India, leveraging Reliance Retail’s extensive network and technological capabilities.