ONDC’s DigiDukaan platform has connected more than 21,000 kirana retailers with over 450 brands across Hyderabad, Jaipur and Mumbai, marking a significant expansion in India’s digital business-to-business (B2B) retail procurement ecosystem. The platform had onboarded more than 12,000 retailers in the previous quarter, according to the Ministry of Commerce and Industry’s October 30, 2026 update.
The government is now encouraging major fast-moving consumer goods (FMCG) companies, distributors and technology providers to expand their participation. The initiative aims to help neighbourhood retailers order products digitally, compare prices and trade schemes, manage inventory and eventually access formal credit and shared logistics services.
Key Takeaways
- ONDC’s DigiDukaan has onboarded more than 21,000 kirana retailers as of September 2026.
- The platform connects retailers with over 450 brands across Hyderabad, Jaipur and Mumbai.
- Retailer onboarding increased from more than 12,000 in the previous quarter.
- Hyderabad accounts for over 16,000 onboarded retailers.
- Monthly repeat-ordering rates in Hyderabad stand at 73–78%.
- HUL, Marico, Colgate-Palmolive, Emami and Amul are participating through their distribution networks.
- The government wants FMCG companies to expand digital procurement, shared logistics and formal credit access for small retailers.
ONDC DigiDukaan Crosses 21,000 Retailers
The Open Network for Digital Commerce (ONDC) announced the expansion of DigiDukaan during a high-level industry meeting held in New Delhi on October 30.
The initiative has connected more than 21,000 retailers with over 450 brands across three cities. This represents an increase of approximately 75% from the previous quarter’s reported figure of more than 12,000 retailers.
The platform is designed to digitise kirana stores as buyers rather than simply helping them sell products online.
Through a common digital interface, shopkeepers can discover products from multiple brands, distributors and wholesalers. They can also view prices, trade schemes and product availability before placing orders.
The objective is to reduce the dependence on fragmented ordering systems, telephone calls and manual record-keeping.
DigiDukaan’s Retailer Adoption
| Metric | Reported figure |
|---|---|
| Retailers onboarded | 21,000+ |
| Brands available | 450+ |
| Cities covered | 3 |
| Hyderabad retailers | 16,000+ |
| Previous quarter retailer base | 12,000+ |
| Hyderabad monthly repeat ordering | 73–78% |
| Reporting period | September 2026 |
Hyderabad is currently the largest market for DigiDukaan, accounting for more than 16,000 onboarded retailers.
The government also cited an initial ONDC retailer study in which 40% of surveyed stores reported lower inventory holdings for products procured through the platform.
However, the ministry did not disclose the survey’s sample size or the average reduction in inventory. The finding should therefore be treated as an early indication rather than proof of a nationwide impact.
Government Pushes FMCG Companies to Expand Digital Procurement
Commerce and Industry Minister Piyush Goyal chaired the Bharat Commerce Chintan Shivir, a CEO roundtable organised by the Department for Promotion of Industry and Internal Trade (DPIIT) and ONDC.
More than 40 leaders from the FMCG industry participated in discussions about improving the efficiency of India’s general trade ecosystem.
The government wants FMCG companies and distributors to adopt common digital infrastructure that can connect manufacturers, wholesalers and neighbourhood retailers.
Goyal said that simpler and more transparent procurement could help kirana stores free up working capital and expand their businesses. He also encouraged the industry to take the DigiDukaan initiative across the country.
The meeting focused on five major areas:
- A common digital identity for kirana retailers.
- Shared logistics and micro-warehousing infrastructure.
- Access to formal credit linked to digital procurement.
- Simpler technology integration for FMCG companies and distributors.
- Better commercial incentives for companies, sales teams and channel partners.
The government believes that participation from established FMCG companies will be essential for scaling the platform beyond its existing markets.
Major FMCG Brands Already Participating
DigiDukaan is building a network of consumer goods manufacturers and their distribution partners.
Companies including Hindustan Unilever, Marico, Colgate-Palmolive, Emami and Amul are participating through their distribution networks.
ITC, Tata Consumer Products and Britannia are at different stages of integration or discussion.
The October 30 roundtable also included representatives from Coca-Cola India, Procter & Gamble, CavinKare, Pidilite, Adani Wilmar, LT Foods, Anmol Industries, Haldiram’s, Veeba and Nilon’s.
Technology and Logistics Partners
The platform also requires technology providers to connect retailers with existing distributor systems.
| Category | Companies and providers |
|---|---|
| FMCG participants | HUL, Marico, Colgate-Palmolive, Emami, Amul |
| Technology platforms live | Paytm for Business, Qwipo, Mulltiply.ai |
| Technology providers progressing towards integration | Bizom, Botree, QuIDPe, ENS |
| Logistics and warehousing | ElasticRun, Shiprocket, India Post, Moeving |
The technology integrations are intended to reduce the cost and complexity of connecting different distributor management systems (DMS).
Standardised product catalogues and plug-and-play connectors could make it easier for companies to join the network without rebuilding their existing technology infrastructure.
How DigiDukaan Could Help India’s Kirana Stores
India’s neighbourhood retailers continue to play a major role in the country’s consumer goods distribution system.
However, many small shops depend on manual purchasing processes and have limited visibility into prices, product availability and promotional schemes across different suppliers.
DigiDukaan attempts to address these problems by bringing procurement information into one digital interface.
1. Better visibility into prices and schemes
Retailers can discover products across participating brands and distributors and compare available pricing and trade schemes.
This could help shopkeepers make more informed purchasing decisions.
2. Improved inventory management
Digital ordering records can help retailers understand purchasing patterns and manage stock more efficiently.
The initial ONDC study’s finding that 40% of surveyed stores reported lower inventory holdings suggests potential working capital benefits, although broader results are still needed.
3. Wider distributor access
A common network could help retailers discover distributors and wholesalers beyond their existing supplier relationships.
For distributors, digital ordering could increase market reach without requiring a proportional expansion of field sales teams.
4. Easier access to working capital
The government is also exploring financing solutions linked to digital procurement and transaction activity.
If implemented effectively, these services could help retailers access formal credit and reduce dependence on informal credit arrangements with suppliers.
Shared Logistics and Next-Day Delivery Are the Next Priorities
Beyond digital ordering, the government wants DigiDukaan to support improvements in physical distribution.
Shared logistics and micro-warehousing could help distributors serve retailers in areas where their existing delivery networks are limited.
The aim is to facilitate more reliable next-day replenishment and reduce supply-chain inefficiencies.
This could be particularly useful for small retailers that cannot afford to maintain large inventories or arrange independent transportation for every purchase.
However, shared logistics and formal credit are development priorities discussed at the roundtable. They should not be interpreted as services already available to every DigiDukaan retailer.
Mumbai Expansion to Strengthen the Network
ONDC’s next phase will focus on increasing brand and distributor participation in Mumbai, particularly North Mumbai.
The organisation also plans to strengthen operations in Hyderabad and Jaipur.
Expanding retailer numbers alone will not determine the platform’s long-term success. It will also need regular ordering activity, reliable product availability, competitive trade schemes and participation from distributors.
The National Traders’ Welfare Board is working with ONDC to mobilise local trade associations and encourage more kirana retailers to join the network.
The Bigger Picture
DigiDukaan represents a different approach to retail digitisation. Instead of competing directly with neighbourhood shops, it aims to give them access to digital procurement infrastructure while retaining their existing distributor relationships.
The broader opportunity is significant because India’s general trade ecosystem includes more than 1.4 crore kirana stores. Digitising even a portion of their purchasing activity could create new opportunities for FMCG companies, distributors, logistics providers and financial institutions.
However, the platform’s long-term impact will depend on whether retailers continue using it regularly and whether companies find the network commercially beneficial. Onboarding figures are an encouraging early indicator, but repeat transactions, cost savings and improved retailer economics will be more important measures of success.
Looking Ahead
ONDC is expected to deepen participation from FMCG brands and distributors in Mumbai while improving the platform’s operations in existing markets. Shared logistics, standardised technology integrations and formal credit solutions could become important parts of its next stage of development.
For India’s kirana retailers, the key question will be whether DigiDukaan can deliver consistently better procurement prices, reliable replenishment and easier access to working capital. If the network achieves these objectives, it could become an important digital layer connecting India’s neighbourhood stores with the country’s FMCG distribution ecosystem.
Frequently Asked Questions
1. What is ONDC DigiDukaan?
DigiDukaan is an ONDC initiative that digitises kirana stores as buyers. It allows retailers to discover and order products from multiple FMCG brands, distributors and wholesalers through a common digital interface.
2. How many retailers have joined DigiDukaan?
More than 21,000 retailers had joined the platform as of September 2026, according to the Ministry of Commerce and Industry.
3. Which cities does DigiDukaan currently cover?
The platform operates across Hyderabad, Jaipur and Mumbai. Hyderabad accounts for more than 16,000 onboarded retailers.
4. Which FMCG companies are participating?
Hindustan Unilever, Marico, Colgate-Palmolive, Emami and Amul are participating through their distribution networks. ITC, Tata Consumer Products and Britannia are at different stages of integration or discussion.
5. How can DigiDukaan help kirana stores?
It can provide better visibility into product prices, trade schemes and availability, simplify ordering and potentially improve inventory management and working capital efficiency.
6. Does DigiDukaan replace existing distributors?
No. ONDC says the initiative is designed to strengthen existing distribution relationships rather than replace distributors.
7. What is ONDC planning next?
The next phase focuses on expanding brand and distributor participation in Mumbai, particularly North Mumbai, while strengthening existing operations and exploring shared logistics, formal credit and simpler technology integration.
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