Arvind Gupta, the independent director of the Open Network for Digital Commerce, has tendered his resignation, marking the latest high-level departure from the government-backed e-commerce initiative. Gupta’s decision follows the exit of several senior leaders in recent months, raising fresh questions about the stability and direction of the ambitious platform aiming to democratize digital commerce in India.

Gupta, a respected figure in the digital governance space and previously associated with the Digital India Foundation, submitted his resignation on June 25. This move comes just two months after the departure of ONDC’s founding CEO, Thampy Koshy, who led the organisation since its 2022 inception and officially stepped down in April.

The exits reflect ongoing turbulence within ONDC’s leadership. Although the government-backed platform has achieved rapid growth—surpassing 200 million transactions and registering more than 760,000 sellers across 616 cities—executive churn has created an undercurrent of uncertainty. Gupta’s departure could signal deeper governance concerns as the organisation prepares for its next growth phase.

Insiders indicate that Gupta’s decision stemmed from personal considerations aligned with a need for the board to reorganize its oversight structure. His resignation has taken effect immediately, and ONDC is now expected to explore options for appointing a replacement director in accordance with its corporate governance framework.

Since Koshy’s exit, ONDC’s board instituted an interim executive committee led by COO Vibhor Jain, who recently assumed responsibilities as acting CEO. Gupta’s exit brings renewed attention to the importance of stable leadership, especially as ONDC expands into verticals such as grocery, quick commerce, insurance, and financial services.

Despite its ambitious goals, ONDC has faced several challenges, including slower-than-expected adoption in categories like fashion and logistics. The loss of seasoned executives like Gupta may impact strategic continuity and stakeholder confidence during this critical transition period.

ONDC was created in 2022 by India’s Department for Promotion of Industry and Internal Trade, with the goal of creating an open, interoperable marketplace to empower MSMEs. While its growth metrics demonstrate upward momentum, analysts caution that the resilience of its governance structure and ability to retain experienced directors will prove determinative in its long-term success.

As the organisation navigates these leadership shifts, key questions remain: Who will take Gupta’s place, and how will ONDC reassure partners, investors, and regulators amid this top-level volatility? With its mission to rival dominant e-commerce platforms, ONDC must now ensure strategic clarity and operational stability to continue its progress.