Bank of India invests 10 cr in ONDC, picks up 5.56% stake
Premium- The bank has invested ₹10 crore through the private placement route and transaction is expected to be completed by Q2FY23
Bank of India on Tuesday has invested ₹10 crore in Open Network for Digital Commerce (ONDC) under the private placement route.
Through this investment, Bank of India will hold 5.56 per cent stake in ONDC, the bank said in its regulatory filing.
The bank has purchased 100,0000 equity shares of ₹100 each. The transaction is expected to be completed by Q2FY23, the regulatory filing noted.
Several other banks like State Bank of India, Bank of Baroda, Punjab National Bank, Kotak Mahindra Bank, Axis Bank, HDFC Bank, IDFC First Bank, and ICICI Bank have picked up 6.35 per cent stake each in the platform.
UCO Bank has a 3.17 per cent holding, while SIDBI and NABARD have 6.35 per cent each.
Open Network for Digital Commerce is a not-for-profit entity set up by the government’s Department for Promotion of Industry and Internal Trade. It aims to connect buyers, retailers, technology providers, financiers and others involved in e-commerce domain.
ONDC wants to democratise trade by bringing rural and semi-urban market players into the formal fold of online trade, which is currently dominated by Amazon and Walmart-promoted Flipkart.
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The pilot was launched in April, this year in five cities — New Delhi, Bengaluru, Bhopal, Shillong and Coimbatore.
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