ONDC, Nazara Tech roll out 'gCommerce' platform; here's what it is

In a move to enhance developer revenues, ONDC and Nazara Technologies have launched the gCommerce platform, an in-game monetisation solution that integrates e-commerce into gaming. The gaming and sports media company expects the platform to yield at least twice the revenue typically generated from in-app advertising.

“We expect the yields to be at least double of advertising CPMs, but we will see, once it rolls out, how it performs. Globally, it can be 2-5x of advertising yields,” Nitish Mittersain, MD and CEO, Nazara Technologies told Fortune India.

Advertising CPM is the cost an advertiser pays per 1,000 views of their advertisement. For example, a CPM of ₹100 means the advertiser spends ₹100 for every 1,000 ad impressions.

The company said the gCommerce platform is in soft launch and will roll out to game developers in Q1 FY26.

How is this gCommerce platform different?

A first-of-a-kind concept, the gCommerce platform integrates e-commerce directly within gaming environments, creating new revenue streams for developers while enhancing the users’ gaming experience.

This is an affiliate-based revenue-sharing structure, which provides game developers with the ability to earn a commission on every transaction initiated by players through the platform. When players make a successful purchase, developers receive a portion of the revenue, making this a flexible and ongoing source of income.

The gCommerce model introduces e-commerce as a monetisation option, offering developers an effective alternative or supplement to in-app purchases and ads. Traditional revenue models for game developers, such as in-app purchases (IAP) and advertising, often yield low conversion rates and limited profitability, particularly in the Indian market.

By partnering with ONDC, the platform connects with a diverse array of sellers across over ten categories, allowing players to browse and purchase products seamlessly within games, making gameplay more immersive and engaging.

The platform is designed to be minimally invasive, meaning players can shop and browse products without disrupting their gaming experience.

"By bringing e-commerce into the gaming ecosystem, we are paving the way for a seamless blend of entertainment and shopping that adds value for players, developers, and the broader digital commerce network,” says T Koshy, CEO of ONDC.

The government-backed ONDC has recorded over 68 million transactions, with 9 million monthly, expanding beyond mobility and food, the Economic Survey FY24 released in July revealed. The network also includes 5,700 farmer-producer organisations and 5.35 lakh sellers, 85% of whom are small, supported by 65 seller apps, 12 logistics providers, and 22 buyer apps.

India’s gaming market grew 23% year-on-year to $3.8 billion in FY24, driven by in-app purchases and ad revenue, despite a 28% GST on online gaming, according to the latest Lumikai report. With a projected 20% CAGR, the market is expected to reach $9.2 billion by FY29, with in-app purchases — up 41% in FY24 and expected to grow at 44% annually — poised to overtake real-money gaming (RMG) revenues by then. The industry has been seeing robust user growth with over 590 million users.

Nazara Tech shares rose 4% on the NSE to ₹913, from an opening price of ₹877. The shares closed at ₹886.25 on Wednesday, up 1% from yesterday’s close of ₹881.95.