PhonePe has launched digital-first Udyam registeration for informal micro merchants through the Udyam Assist Platform (UAP). 

The IPO-bound fintech giant also signed an memorandum of understanding (MoU) with SIDBI to facilitate credit access to micro merchants through digital lending solutions integrated with UAP.

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 generation of Udyam registration numbers and Udyam Assist certificates. 

By providing micro merchants with a formal business identity, this initiative allows micro enterprises to unlock a wide range of benefits, including access to government schemes and tax benefits, the ability to open business bank accounts, and access to the digital payments ecosystem and credit.

"Even after 78 years of independence, nearly 70% of Indians still live in poverty or below the poverty line. The government cannot provide public-sector jobs to all unemployed youth in the country. That is why we are promoting entrepreneurship. Since the government cannot reach everywhere, we are partnering with private companies to help formalize the micro-enterprise sector. Our partnership with PhonePe is part of that vision, and we invite more private companies to join us in taking this initiative forward," Union Minister for Micro, Small and Medium Enterprises, Jitan Ram Manjhi, said at a press event today.

SIDBI said it has been associated with Udhyam Assist and facilitated digital identity to 2.7 crore MSMEs till date. "It has become one of the largest repository of MSMEs globally," Y.M. Kumari, chief general manager, Small Industries Development Bank of India (SIDBI) said. "Our aim is to set up branches across all industrial clusters to offer access to credit to MSMEs. So, we look to partner with someone who has large merchant database. The partnership with PhonePe 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," she added.

Hemant Gala, CEO, PhonePe Lending, added, “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," PhonePe Lending CEO Hemant Gala added.