At a landmark event in Delhi, PhonePe became the first fintech player in India to enable end-to-end digital Udyam registration for informal micro enterprises (IMEs) via the Udyam Assist Platform (UAP). The launch was attended by Union MSME Minister Shri Jitan Ram Manjhi and SIDBI CGM Smt. Y.M. Kumari, highlighting the government’s push for inclusive digital formalisation.
Through this move, PhonePe aims to accelerate financial inclusion and access to credit for India’s smallest business owners — a significant leap in enabling micro merchants to transition from the informal to the formal economy.
Background: What is Udyam Assist Platform (UAP)?
The Udyam Assist Platform (UAP), developed by the Small Industries Development Bank of India (SIDBI) under the Ministry of MSME, was created to bring non-GST registered Informal Micro Enterprises (IMEs) into the formal fold. IMEs can register via UAP to receive Udyam Assist Certificates, granting them a formal identity and enabling access to:
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Priority Sector Lending (PSL)
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Government schemes and subsidies
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Digital payment and banking services
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Business development resources
Over 2.75 crore businesses have already received Udyam Assist Certificates since the platform’s inception.
Why this matters for MSMEs
PhonePe’s integration with UAP transforms this registration process into a completely digital-first experience, a first in the fintech space. Unlike traditional platforms that require manual steps, PhonePe merchants can now:
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Register seamlessly through the PhonePe app
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Instantly generate their Udyam Assist Certificate
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Gain eligibility for loans, subsidies, and official tenders
This low-friction pathway to formalisation is especially crucial for rural and urban micro merchants who often lack documentation, awareness, or access to government offices.
At the launch, Udyam Assist Certificates were issued live via PhonePe, signalling a major step in India’s Digital MSME movement.
Also read: New MSME Minister Jatin Ram Manjhi Urges Entrepreneurs to Register on Udyam Portal
SIDBI and PhonePe: A partnership for digital lending
In addition to enabling registration, PhonePe also announced an MoU with SIDBI to integrate digital lending solutions with UAP. This will enable PhonePe-registered micro enterprises to apply for seamless credit — without needing collateral or physical documentation.
Hemant Gala, CEO of PhonePe Lending, called this a “pivotal moment” for small entrepreneurs, stating that their full-stack digital solution will “unlock government schemes, credit access, and long-term MSME empowerment.”
SIDBI’s CGM Smt. Y.M. Kumari added that this partnership represents an acceleration in formalisation, complementing SIDBI’s ongoing mission to empower micro-enterprises nationwide.
What’s next for MSME digital inclusion?
This initiative marks a critical milestone in India’s Digital MSME roadmap. By embedding formalisation into existing merchant apps and payments platforms, the government and private sector are working together to ensure no micro business is left behind.
As more fintechs follow suit, the barriers to formalisation — once too high for street vendors, artisans, and local shop owners — are beginning to fall.
For India’s 6.6 crore+ MSMEs, especially those in the informal sector, this digital-first Udyam integration could become the gateway to transformation, credit access, and economic resilience.