PhonePe Signs Pact with SIDBI to Digitally Register Informal Micro Enterprises

Fintech leader PhonePe has signed a memorandum of understanding with Small Industries Development Bank of India (SIDBI) to digitally enable Informal Micro Enterprises (IMEs) across India through the Udyam Assist Platform. 

The partnership is designed to simplify registration and unlock access to credit, government schemes, and digital payment solutions for over 2.75 crore small businesses.

PhonePe-Sidbi Pact to Streamline Formalisation via Udyam Assist

The collaboration facilitates end-to-end digital registration for micro enterprises on the Udyam Assist Platform, which was launched by SIDBI in January 2023 under the Ministry of MSME. This move aligns with the broader goal of formalising India’s unorganised sector and integrating it into the mainstream digital economy. 

The facility will soon be made available on the PhonePe Business app, providing small merchants with an accessible gateway to formal recognition and benefits.

Digital Push for MSME Empowerment and Economic Growth

PhonePe's digital-first approach, combined with SIDBI’s policy backing, aims to strengthen India's MSME ecosystem. Udyam Assist registration enables micro businesses, especially those not registered under GST, to obtain formal credentials. 

This opens up avenues for institutional credit, subsidies, insurance, and participation in digital commerce. The partnership is expected to significantly contribute to the government's financial inclusion and digital transformation initiatives.

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Impact and Reach of Udyam Assist Platform

Over the past 2 years, the Udyam Assist Platform has issued certificates to more than 2.75 crore small businesses, becoming a key driver of MSME formalisation. By integrating this process into PhonePe’s platform, the initiative is set to reach an even wider user base, especially among small merchants already using digital payment tools.

Conclusion

The PhonePe-Sidbi partnership represents a major step towards empowering India’s micro-enterprise sector. By offering digital Udyam Assist registration, the collaboration will enhance access to institutional credit and policy benefits, enabling long-term growth and sustainability for small businesses across the country.

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