PhonePe signs MoU with SIDBI to empower micro enterprises via Udyam Assist Platform

10 Sep 2025 , 03:20 PM

Fintech major PhonePe has signed a memorandum of understanding (MoU) with the Small Industries Development Bank of India (SIDBI) to provide an end-to-end digital solution for informal micro enterprises (IMEs) and merchants through the Udyam Assist Platform (UAP).

The collaboration is aimed at bringing IMEs into the formal economy by enabling them to register digitally on UAP. Once registered, businesses can access a wide range of benefits, including government schemes, easier credit, and integration into the digital payments ecosystem.

The MoU was signed in the presence of Union MSME Minister Jitan Ram Manjhi. PhonePe said the facility will soon be made available on the PhonePe Business app.

“Our partnership with SIDBI will unlock access to government schemes, credit facilities, and crucial benefits for MSMEs, helping contribute to India’s economic vision,” said Hemant Gala, PhonePe’s pending CEO. “Through our user-friendly and efficient solution, we are making the vision of empowering small and micro businesses a seamless digital reality.”

The Udyam Assist Platform, launched by SIDBI in January 2023 under the Ministry of MSME’s Formalisation Project, has emerged as a key tool in the sector’s transition. According to YM Kumari, Chief General Manager at SIDBI, the platform has issued more than 2.75 crore Udyam Assist Certificates to small businesses in just over two years, especially helping non-GST registered enterprises move into the formal fold.

The PhonePe–SIDBI tie-up is expected to further accelerate this momentum, giving millions of micro businesses simplified access to formal credit and government-backed support schemes.

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