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Build ONDC Catalogue Software for Indian MSMEs: Your Next SaaS MVP

Indian MSMEs and D2C brands are struggling to manage product listings across ONDC and other channels. Discover how to build a SaaS MVP that streamlines ONDC catalogue management, ensures compliance, and boosts seller efficiency.

By Krapton Engineering9 min readProduct Ideas

The Open Network for Digital Commerce (ONDC) is rapidly transforming India's e-commerce landscape, offering unprecedented reach to millions of MSMEs and D2C brands. However, navigating ONDC's specific data schemas and maintaining accurate product catalogues across multiple platforms presents a significant challenge for many sellers, often leading to manual errors and lost opportunities.

TL;DR: Indian MSMEs need dedicated ONDC catalogue software to efficiently manage product listings, ensure data quality, and comply with ONDC and GST norms. This article outlines an MVP strategy for building a SaaS solution that empowers sellers to scale their digital presence on ONDC, focusing on essential features, technical considerations, and a robust go-to-market plan.

Key takeaways

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  • ONDC presents a massive opportunity for Indian MSMEs, but managing product data is a significant bottleneck.
  • A dedicated ONDC catalogue software MVP should focus on core features like product data capture, ONDC schema validation, and GST HSN/SAC code management.
  • Multi-language support for Indic languages is crucial for reaching Bharat's diverse seller base.
  • Monetisation can be tiered based on product count or sales volume, with a freemium model to drive adoption.
  • Krapton offers the expertise to build and launch such a vertical SaaS MVP, ensuring compliance and scalability for the Indian market.

The ONDC Opportunity for Indian Sellers

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ONDC, an initiative by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India, is designed to democratise digital commerce. By creating an open network protocol, it allows buyers and sellers to transact independently of specific platforms. As of 2026, ONDC's rapid expansion is bringing millions of new sellers, particularly from Tier-2 and Tier-3 cities, into the digital fold. This democratisation, while empowering, also creates a complex data management challenge for MSMEs and D2C brands.

Many small businesses in India operate with limited technical resources, relying on manual processes, spreadsheets, or basic e-commerce platforms. When they join ONDC, they face the daunting task of mapping their existing product data to ONDC's standardised schema, ensuring data consistency, and managing inventory across their own website, other marketplaces, and now ONDC. Generic global Product Information Management (PIM) systems often fall short, lacking native support for Indian specificities like GST HSN/SAC codes, vernacular language capabilities, or direct integration with ONDC APIs.

What is ONDC Catalogue Software?

ONDC catalogue software is a specialised Product Information Management (PIM) system designed to streamline the creation, enrichment, and publication of product listings specifically for the Open Network for Digital Commerce in India. Its core purpose is to act as a single source of truth for all product-related data, ensuring accuracy, compliance, and consistency across ONDC and potentially other sales channels.

The primary target users are Indian MSMEs, D2C brands, kirana stores, small manufacturers, and even service providers looking to list on ONDC. These businesses often grapple with:

  • Manual Data Entry: Tedious, error-prone, and time-consuming processes for listing products.
  • Data Inconsistency: Variations in product descriptions, pricing, and stock levels across different platforms.
  • ONDC Schema Compliance: Difficulty understanding and adhering to ONDC's specific data requirements for categories, attributes, and images.
  • GST Compliance: Ensuring correct HSN/SAC codes are associated with products for accurate invoicing.
  • Multi-Channel Management: Struggling to keep inventory and product details synchronised across their own website, marketplaces, and ONDC.

A dedicated ONDC catalogue software addresses these pain points by centralising data management, automating validation, and simplifying the publication process.

MVP Feature Set: Building for Indian Realities

An effective MVP for ONDC catalogue software must address the most critical pain points for Indian sellers while ensuring rapid time-to-market. Here’s a pragmatic feature set:

  1. Product Data Capture & Enrichment:
    • Intuitive interface for adding new products, including name, description, pricing (in ₹), images, and videos.
    • Support for rich text descriptions and multiple product images/variants.
    • Categorisation based on ONDC's taxonomy and custom categories.
  2. ONDC Schema Validation & Mapping:
    • Automated validation of product data against ONDC's specifications, flagging missing or incorrect attributes.
    • Guidance for mapping local product attributes to ONDC-standard attributes.
    • Real-time feedback on data quality before publication.
  3. GST HSN/SAC Code Management:
    • Dedicated fields for HSN (Harmonised System of Nomenclature) codes for goods and SAC (Service Accounting Codes) for services.
    • Integration with a basic HSN/SAC lookup database (or user input with validation) to ensure compliance for GST e-invoicing.
  4. Multi-language Support for Indic Languages:
    • Ability to add product names and descriptions in multiple Indian languages (e.g., Hindi, Marathi, Bengali) to cater to Bharat's diverse linguistic landscape. This is crucial for reaching customers in Tier-2 and Tier-3 cities.
  5. Basic Inventory Synchronisation:
    • Manual or simple API-based synchronisation of stock levels between the PIM and ONDC.
    • Option to update inventory in bulk.
  6. ONDC API Integration:
    • Secure integration with ONDC APIs for publishing and updating product listings.
    • Error reporting and status updates for published items.

Example ONDC Product JSON Structure (simplified):

{
  "id": "PROD12345",
  "descriptor": {
    "name": "Organic Basmati Rice 5kg",
    "short_desc": "Premium organic basmati rice, 5kg pack.",
    "long_desc": "Sourced from the foothills of the Himalayas...",
    "images": [
      "https://example.com/image1.jpg",
      "https://example.com/image2.jpg"
    ]
  },
  "price": {
    "currency": "INR",
    "value": "650.00"
  },
  "category_id": "Food & Beverage",
  "fulfillment_id": "DELIVERY_PARTNER_X",
  "quantity": {
    "available": { "count": "100" }
  },
  "tax_info": {
    "hsn_code": "10063020",
    "gst_rate": "5"
  }
}

Must-Skip Features for an MVP

To ensure a lean and focused MVP, certain features, while valuable, should be deferred to later stages:

  • Complex Workflow Automation: Multi-stage approval processes for product changes are not essential for small businesses initially.
  • Advanced Analytics & Reporting: Detailed sales insights or performance dashboards can be built once core catalogue management is stable.
  • AI-driven Content Generation: While AI can generate descriptions, an MVP should focus on structured data, not generative content.
  • Deep ERP/CRM Integrations: Complex, two-way synchronisation with existing enterprise resource planning (ERP) or customer relationship management (CRM) systems is beyond MVP scope. Focus on ONDC and perhaps one popular e-commerce platform.
  • Digital Asset Management (DAM) beyond basic image/video upload: Advanced features like image manipulation, versioning, or rights management are not critical for the first iteration.

When NOT to use this approach

This ONDC catalogue software approach is ideal for MSMEs, D2C brands, and small enterprises newly engaging with ONDC. It might not be suitable for very large enterprises that already have robust, highly customised PIM solutions deeply integrated with complex ERP systems, or for businesses that do not plan to sell on ONDC.

Monetisation & Go-to-Market Strategy for India

A well-defined monetisation and go-to-market (GTM) strategy is crucial for adoption and sustainability in the Indian market.

Monetisation Model:

A subscription-based SaaS model with tiered pricing works best for Indian MSMEs:

  • Freemium Tier: Offer basic catalogue management for a limited number of products (e.g., 50-100 items) with essential ONDC publishing. This lowers the barrier to entry and allows sellers to experience the value.
  • Basic Plan (₹499-999/month plus GST): Increased product limits (e.g., 500-1000 items), multi-language support, basic inventory sync.
  • Growth Plan (₹1,499-2,999/month plus GST): Higher product limits, priority support, integration with one external e-commerce platform (e.g., Shopify India, WooCommerce).
  • Enterprise Plan (Custom Pricing): For larger D2C brands or manufacturers with extensive catalogues, offering dedicated support and custom integrations.

Go-to-Market Strategy:

  1. Partnerships with ONDC Seller Onboarding Agencies: Collaborate with agencies that help businesses get onto ONDC. They can white-label or recommend the software.
  2. Direct Outreach to D2C Communities & MSME Associations: Engage with online and offline groups where target users congregate.
  3. Content Marketing: Create guides and tutorials on ONDC listing, GST compliance for e-commerce, and product data best practices, positioning the software as the solution.
  4. Digital Advertising: Target Indian business owners and e-commerce sellers on platforms like Google and LinkedIn.
  5. Webinars & Workshops: Host free sessions demonstrating how to efficiently list products on ONDC using the software.
  6. Referral Program: Incentivise existing users to refer new sellers.

Technical Considerations & Krapton's Approach

Building a robust ONDC catalogue software requires a thoughtful technical architecture that prioritises scalability, data integrity, and compliance with Indian regulations.

Architecture & Technology Stack:

  • Backend: A microservices-based architecture using Node.js (with NestJS/Express) or Python (with FastAPI/Django) for flexibility and scalability.
  • Database: PostgreSQL for structured product data, leveraging its JSONB capabilities for flexible attribute storage. For image/video storage, cloud object storage like AWS S3 or Google Cloud Storage would be ideal.
  • Frontend: React or Next.js for a responsive web application, ensuring a smooth user experience across devices, including budget Android phones prevalent in India.
  • Cloud Infrastructure: Deploy on AWS, Azure, or GCP, choosing India-based regions (e.g., Mumbai, Hyderabad, Delhi-NCR) for lower latency and potential data residency considerations.

Key Technical Challenges & Solutions:

1. Data Ingestion & Transformation:

  • Challenge: Sellers have product data in various formats (spreadsheets, existing e-commerce exports). Transforming this into ONDC-compliant schema is complex.
  • Solution: Implement a robust data ingestion pipeline with flexible CSV/Excel import tools and a mapping interface. Use server-side validation to enforce ONDC schema rules. In a recent client engagement, our team built a similar data migration tool for a logistics platform, handling diverse CSV formats and ensuring data integrity through a multi-stage validation process before committing to the database.

2. ONDC API Integration:

  • Challenge: ONDC APIs require secure authentication, error handling, and adherence to rate limits.
  • Solution: Use a dedicated API gateway for secure communication. Implement robust retry mechanisms and circuit breakers to handle transient network issues, crucial for variable Indian network conditions.

3. Data Security & Privacy:

  • Challenge: Handling sensitive business data and ensuring compliance with the Digital Personal Data Protection Act 2023 (DPDP Act), especially if seller contact information is stored.
  • Solution: Implement end-to-end encryption, regular security audits, and strict access controls. Ensure data minimisation and transparent data handling practices.

Our team has extensive experience in MVP development, building scalable web applications, and integrating complex APIs for Indian and international clients. We understand the nuances of the Indian digital ecosystem, from UPI payments to GST compliance, and can help you navigate the technical landscape to launch a successful ONDC catalogue software.

FAQ

What is ONDC?

ONDC (Open Network for Digital Commerce) is a non-profit initiative by the Government of India to create an open, interoperable network for digital commerce. It allows buyers and sellers to connect and transact regardless of the platform they use, aiming to democratise e-commerce and expand its reach across India.

How does ONDC catalogue software help with GST compliance?

The software helps by allowing sellers to accurately assign HSN (Harmonised System of Nomenclature) codes for goods and SAC (Service Accounting Codes) for services to each product. This ensures that when an order is processed, the correct tax rates are applied, simplifying GST e-invoicing and compliance for businesses in India.

Can this integrate with my existing e-commerce store?

While the MVP focuses on ONDC, future iterations can include integrations with popular e-commerce platforms like Shopify, WooCommerce, or Magento. This would allow for centralised product management, syncing inventory and product details across your own website and ONDC from a single dashboard.

Ready to Build Your ONDC SaaS MVP?

The opportunity to empower millions of Indian MSMEs with efficient ONDC catalogue management is immense. Building a focused SaaS MVP that addresses their specific pain points can create significant value. If you're an Indian founder, CTO, or product leader looking to capitalise on this market, Krapton has the engineering expertise to bring your vision to life. Validate and build an MVP with Krapton — book a free consultation with Krapton to discuss your product idea and roadmap.

About the author

Krapton Engineering is a team of principal-level software engineers and product strategists with years of hands-on experience building and scaling web and mobile applications, SaaS products, and AI solutions for Indian and international businesses. We specialise in architecting robust, compliant platforms for high-growth markets, including deep expertise in India Stack integrations and e-commerce solutions.

  • product ideas
  • startup ideas
  • saas ideas
  • mvp development
  • product validation
  • ONDC
  • e-commerce India
  • MSME SaaS
  • catalogue management
  • GST compliance

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