Reliance Retail, the retail arm of Reliance Industries Ltd, has reportedly launched a pilot programme on the government-backed Open Network for Digital Commerce (ONDC) via Fynd, an omnichannel retail platform in which Reliance holds an investment.
According to a report by ET, a Reliance Retail store named Shri Kannan Departmental Store in Madurai, Tamil Nadu, is actively participating on the seller side of ONDC through Fynd.
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Expansion Plans:
“This is being conducted as a trial. Several more stores in Tamil Nadu are in the works. They’re experimenting with it. Should it prove successful, Reliance Retail intends to expand it to five stores initially, then to 100 stores on ONDC. Eventually, all brands under Reliance Retail’s umbrella will be integrated onto ONDC,” a source informed ET.
In December 2021, Reliance Retail purchased Shri Kannan Departmental Store for INR 152.5 crore.
During its beta launch in Bengaluru in September 2022, Dunzo, a quick-commerce company supported by Reliance Retail, became operational on ONDC. However, the report noted that Dunzo has been inactive as a logistics service provider on the network since April this year.
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Established in 2012 by Farooq Adam, Harsh Shah, and Sreeraman MG, Fynd is an omnichannel fashion platform that offers a wide range of products, including clothing, footwear, jewelry, and accessories, sourced from leading brands across the country.
The startup facilitates the transition of small and medium-sized businesses to the online sphere by aiding them in listing their inventory on various ecommerce platforms like Amazon and Nykaa, among others. Additionally, it assists these businesses with last-mile logistics delivery. Based in Mumbai, the startup enhances delivery efficiency by sourcing products from outlets closest to the customer.
Reliance’s Stake in Fynd
Reliance Industries Limited secured an 87.6% stake in Fynd back in 2019, with a deal valued at INR 295 crore (about $42.33 million).
During the quarter ended March 2024, Reliance Retail witnessed a 9.8% year-on-year increase in operating revenue, reaching INR 67,610 crore compared to INR 61,559 crore in the corresponding period of the previous year. However, revenue experienced a sequential decline of over 9%, dropping from INR 74,373 crore.