PhonePe today announced the launch of digital-first Udyam generation through the Udyam Assist Platform (UAP) at an event in Delhi. The launch was graced by the Honourable Union Minister for Micro, Small and Medium Enterprises, Shri Jitan Ram Manjhi, in the presence of Y.M. Kumari, Chief General Manager, Small Industries Development Bank of India (SIDBI). This makes PhonePe the first Fintech to offer an end-to-end digital solution directly to its merchants, contrasting with the traditional Udyam certificate issuance used by most other platforms.
By providing micro merchants with a formal business identity, this initiative enables Informal Micro Enterprises (IMEs) to unlock a wide range of benefits, including access to government schemes and tax benefits, the ability to open business bank accounts, and entry into the digital payments ecosystem and financial services.
As part of the launch event, Udyam Assist Certificates were issued to merchants through this new digital process, marking a milestone in India’s digital financial inclusion landscape. PhonePe also announced the signing of a Memorandum of Understanding (MoU) with SIDBI, facilitating credit access to micro merchants through seamless digital lending solutions integrated with UAP.
Shri Jitan Ram Manjhi, Hon’ble Union Minister for MSME, Government of India, remarked, “Even after 78 years of independence, nearly 70% of our population still struggles under BPL conditions or faces unemployment. Earlier, in smaller villages, local vendors were compelled to take loans of even ₹10,000 at interest rates as high as 10%, often without any security or collateral. Initiatives like Udyam Assist, supported by responsible private companies like PhonePe, are changing this reality. Companies such as PhonePe have given India global traction by leveraging their vast networks and initiatives. Importantly, PhonePe is a secure and easy-to-use platform, delivering benefits to merchants and consumers alike.”
He further added, “The Udyam portal, which was launched in 2020, has already registered more than 39 crore businesses and is on track to soon cross the 50 crore mark. Alongside this, private companies like PhonePe are playing a critical role not only in financial inclusion but also in generating employment opportunities across the country.”
Y.M. Kumari, Chief General Manager, Small Industries Development Bank of India (SIDBI), said, “Udyam Assist Platform has emerged as a major driver for the formalization of non-GST registered Informal Micro Enterprises. The platform enabled issue of Udyam Assist Certificates to more than 2.75 crore small businesses, over a period of more than 2 years. Seamless digital integration with the designated agencies marks another important positive step in the formalization journey. This initiative will further accelerate the formalization of informal micro-businesses into the mainstream economy as well as ease out and enhance credit flow to these entities.”
Sameer Nigam, Co-Founder and CEO, PhonePe, said, “The Udyam Assist platform has become a reality only because of the unwavering support from SIDBI and the Government of India. SIDBI has been instrumental in helping PhonePe expand the reach of KYC across micro-merchants, ensuring trust and compliance at scale. Today, PhonePe already serves over 4.5 crore merchants across India. With this partnership, we envision the addressable market to grow nearly three times, opening up unparalleled opportunities for financial inclusion and business growth.”
Hemant Gala, CEO, PhonePe Lending, added, “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. We are deeply honored to be one of the first institutions to deliver a complete digital-first integration with the Udyam Assist Platform. Our partnership with SIDBI will unlock access to government schemes, credit facilities, and key benefits for MSMEs, contributing 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.”
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The Udyam Assist Platform (UAP), developed and implemented by SIDBI as part of the Ministry of MSME’s Formalization Project, facilitates registration of Informal Micro Enterprises through the Assist process for the generation of Udyam Registration Numbers and Udyam Assist Certificates. UAP enables online registration of IMEs with Designated Agencies, representing a stride by the Ministry towards formalizing micro-enterprises nationwide.
