MUMBAI, August 14, 2025 — Motilal Oswal Asset Management Company (MOAMC), backed by Raamdeo Agrawal’s leadership, has joined the government-supported Open Network for Digital Commerce (ONDC) to amplify
MUMBAI, August 14, 2025 — Motilal Oswal Asset Management Company (MOAMC), backed by Raamdeo Agrawal’s leadership, has joined the government-supported Open Network for Digital Commerce (ONDC) to amplify mutual fund distribution across India. To enable this digital setup, MOAMC has selected fintech firm Cybrilla to power its backend platform for the integration.
ONDC, an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce, seeks to democratise digital commerce through an interoperable open network. By leveraging ONDC’s open protocol, MOAMC plans to create new channels that offer mutual fund access to a broader investor base—including those investing for the first time.
MOAMC’s integration with ONDC is more than a new distribution channel — it represents a strategic shift toward inclusive investing. As Prateek Agrawal, Managing Director and CEO, explained, this move aims to improve access to diversified funds and empower retail investors to meet their financial goals through an intuitive digital interface.
Akhil Chaturvedi, Executive Director and Chief Business Officer, highlighted the intent to bridge distribution gaps. He sees this initiative as critical to expanding wealth management participation across demographics and geographies, facilitated by enhanced digital infrastructure.
ONDC marks a shift from centralised platforms to a decentralised ecosystem. Vibhor Jain, Acting CEO and COO of ONDC, emphasized the significance of this integration in fostering wider retail participation in formal finance—setting an industry precedent for innovation and technology-led access.
This is particularly transformative for underserved regions and investors. ONDC allows grassroots distributors and digital platforms to reach potential investors previously neglected by traditional models. Anchal Jajodia, co-founder of Cybrilla, underscored how this collaboration brings together the trust of established financial institutions with the openness and reach of a digital network.
ONDC’s open architecture enables direct mutual fund distribution via streamlined tech rails. Cybrilla’s system facilitates real-time interfaces between distributors and fund houses, bypassing legacy platforms and significantly reducing transaction costs—from ₹2–7 to just ₹0.75 per transaction. This also improves transparency and reliability by offering visibility into transaction failures or delays.
The platform operates on standards similar to UPI, creating a shared protocol compatible across all participants. This simplifies integration, maintaining consistency and interoperability across apps and platforms.
The potential impact is expansive. The Association of Mutual Funds in India (AMFI), in its Vision Paper 2025, projects that ONDC-like models can extend mutual fund access even in tier-2 and tier-3 cities via high-traffic kiosks or Kirana stores. Equipped with digital tools, local agents could onboard customers in regional languages and facilitate small-ticket systematic investment plans (SIPs), amplifying reach and familiarity with financial products.
MOAMC isn’t alone in this transformative shift. Earlier this year, DSP Asset Managers partnered with Cybrilla to go live on ONDC, enabling local entrepreneurs and fintech startups to distribute mutual funds cost-effectively—emphasizing inclusion of first-time investors. DSP also aims to offer innovative products like daily SIPs and goal-based micro-investments, supported by ONDC’s reduced fees and decentralized structure.
Kotak Mutual Fund likewise announced integration with ONDC and Cybrilla, reinforcing this trend of mainstream AMCs embracing open digital distribution.
While the potential is massive, early operational hiccups have surfaced. For example, initial transaction failure rates were high as the platform was being piloted. Stakeholders such as Vishrant Suresh, founder of Asset Plus, say reliability is improving and is expected to meet industry standards soon.
Financial distribution through ONDC may also call for regulatory evolution—especially for allowing smaller distributors to operate with lighter compliance. Some proposals suggest replacing full NISM certification with tailored short courses for micro-distributors to onboard investors safely and compliantly.
This move by MOAMC signals the start of a transformation that makes wealth creation accessible across economic and geographic divides. With the ability to invest in mutual funds through local stores, apps, or small-town distributors, even daily wage earners could benefit from structured, low-cost SIPs.
By aligning digital innovation with regulatory infrastructure and investor empowerment, the integration could foster wider financial inclusion—mirroring the success of UPI in payments.
