PhonePe Inks Pact with SIDBI to Enable Digital Udyam Assist Registration

Fintech major PhonePe on Wednesday signed an MoU with SIDBI to offer an end-to-end digital solution through the Udyam Assist Platform (UAP) to empower micro enterprises and merchants.

The collaboration aims to formalise Informal Micro Enterprises (IMEs) across India by providing them with digital-first Udyam Assist registration, which enables them to access benefits including government schemes, credit facilities, and the broader digital payments ecosystem.

The MoU was signed in the presence of Union Minister for Micro, Small and Medium Enterprises, Jitan Ram Manjhi.

"Our partnership with SIDBI will unlock access to government schemes, credit facilities, and crucial benefits for MSMEs and will help contribute to India's economic vision. Through PhonePe's user-friendly and efficient, end-to-end digital solution, we're not just facilitating registration, we are translating the vision of empowering small and micro businesses into a seamless digital reality," PhonePe Lending CEO Hemant Gala said.

Merchants will soon be able to avail the facility on the PhonePe Business app.

The Udyam Assist Platform (UAP), launched in January 2023 by SIDBI under the Ministry of MSME's Formalisation Project, facilitates online registration for IMEs.

Udyam Assist Platform has emerged as a major driver for the formalisation of non-GST registered Informal Micro Enterprises, YM Kumari, Chief General Manager, Small Industries Development Bank of India (SIDBI) said.

The platform enabled issue of Udyam Assist Certificates to more than 2.75 crore small businesses over a period of over 2 years.