PhonePe, India’s leading digital payments platform, has signed a Memorandum of Understanding (MoU) with the Small Industries Development Bank of India (SIDBI) to provide end-to-end digital Udyam Assist registration services for micro enterprises and merchants. This partnership is set to accelerate the formalisation of Informal Micro Enterprises (IMEs) across India by leveraging digital-first solutions and technology-enabled services.
Boosting Formalisation of Micro Enterprises
The collaboration between PhonePe and SIDBI aims to simplify the Udyam Assist registration process for IMEs, enabling them to access government schemes, credit facilities, and the broader digital payments ecosystem. By formalising their businesses, micro enterprises can benefit from structured financial support, easier access to loans, and enhanced credibility in the market.
Through this partnership, PhonePe will integrate digital Udyam Assist services into its platform, allowing merchants and small business owners to complete registration efficiently without the need for extensive paperwork. The initiative aligns with the government’s MSME formalisation agenda, helping IMEs transition from informal operations to a structured, digitally empowered ecosystem.
About the Udyam Assist Platform
The Udyam Assist Platform (UAP) was launched in January 2023 under the Ministry of MSME’s Formalisation Project. Designed specifically for micro enterprises, UAP facilitates online registration for IMEs, streamlining the process of obtaining Udyam Assist Certificates. These certificates serve as proof of formalisation and provide micro enterprises with access to financial schemes, government benefits, and digital infrastructure.
Over the past two years, the Udyam Assist Platform has issued more than 2.75 crore certificates, making it a major catalyst for formalising non-GST registered micro enterprises. By connecting businesses to the digital economy, the platform has significantly contributed to enhancing financial inclusion and supporting entrepreneurial growth.
Advantages of the PhonePe-SIDBI Partnership
- Seamless Digital Registration: IMEs and merchants can complete Udyam Assist registration entirely online through the PhonePe platform.
- Access to Government Schemes: Registered micro enterprises can avail of MSME-related subsidies, schemes, and incentives.
- Credit Facilities: Formalisation allows enterprises to gain easier access to loans, working capital, and financial support from banks and financial institutions.
- Integration with Digital Payments: IMEs gain access to the digital payments ecosystem, enabling secure and efficient transactions with customers.
Driving MSME Growth in India
The partnership between PhonePe and SIDBI exemplifies the role of digital platforms in transforming India’s MSME sector. With formalisation and access to technology, micro enterprises can grow sustainably, improve operational efficiency, and compete in a modern economy.
By joining forces, PhonePe and SIDBI are set to revolutionise the formalisation of Informal Micro Enterprises through digital Udyam Assist registration. With the Udyam Assist Platform already issuing over 2.75 crore certificates, this initiative will further enhance financial inclusion, access to government schemes, and participation in the digital economy, empowering micro enterprises to thrive in a rapidly evolving business landscape.
