PhonePe, SIDBI launch digital-first Udyam assist for micro-enterprises
India’s largest digital payments company, PhonePe, has taken a decisive step toward reshaping financial inclusion by launching a digital-first Udyam Assist Registration for informal micro-enterprises (IMEs). Announced at a Delhi event on September 10, the initiative makes PhonePe the first fintech in the country to offer a complete end-to-end digital solution for Udyam registration directly to its merchant base.
The launch was graced by Shri Jitan Ram Manjhi, Union Minister for MSME, along with senior representatives from the Small Industries Development Bank of India (SIDBI). By partnering with SIDBI, PhonePe aims to bridge the formalization gap for millions of small businesses that have so far operated in the informal economy.
Formal identity for India’s smallest entrepreneurs
For IMEs, formal registration has often been an uphill battle, tied up in paperwork and dependent on intermediaries. PhonePe’s integration with the Udyam Assist Platform (UAP) changes that. Merchants can now secure a Udyam Assist Certificate digitally, which unlocks a range of opportunities: eligibility for government schemes, tax benefits, access to credit, business banking, and entry into the wider digital financial ecosystem.
At the launch, certificates were issued in real time, showcasing how the digital process eliminates friction and accelerates empowerment.
Partnership for seamless credit
Beyond registration, PhonePe also signed an MoU with SIDBI to integrate digital lending solutions with UAP, giving micro-merchants easier access to credit.
“PhonePe has always been at the forefront of enabling digital financial inclusion. Today marks a pivotal moment for Digital India and millions of small entrepreneurs across our nation,” said Hemant Gala, CEO, PhonePe Lending. “Through our partnership with SIDBI, we are translating the vision of empowering small and micro businesses into a seamless digital reality.”
SIDBI’s vision of formalization
Smt. Y.M. Kumari, Chief General Manager at SIDBI, emphasized that the Udyam Assist Platform has already enabled over 2.75 crore small businesses to secure formal recognition. The new digital-first integration, she said, will accelerate credit flow and bring more IMEs into the mainstream economy.
The larger canvas
Developed under the Ministry of MSME’s Formalization Project, UAP is a national initiative to provide IMEs with a digital gateway to legitimacy. With PhonePe’s reach of 65 crore registered users and over 45 million merchants, this partnership could catalyze one of the largest waves of micro-enterprise formalization in India’s economic history.
PhonePe’s move also aligns with its expanding portfolio that spans insurance, lending, wealth management, hyperlocal e-commerce (Pincode), and app distribution (Indus Appstore). By embedding financial identity at the grassroots, the fintech giant is reinforcing its mission: ensuring every Indian has an equal opportunity to progress by unlocking the flow of money and services.