PhonePe enables Udyam registration for small biz

MUMBAI: PhonePe on Sept 10 launched digital-first Udyam generation through the Udyam Assist Platform at an event in Delhi, becoming the first fintech to provide an end-to-end digital registration service to merchants. The event was attended by union MSME minister Jitan Ram Manjhi and Y.M. Kumari, chief general manager of SIDBI.


The initiative gives informal micro enterprises a formal business identity, enabling them to access govt schemes, tax benefits, and financial services. It also allows them to open business bank accounts and integrate into the digital payments ecosystem. Certificates were issued to merchants through the new digital process during the launch. PhonePe also signed an MoU with SIDBI to expand credit access for micro businesses through digital lending solutions integrated with the platform.


Hemant Gala, CEO of PhonePe Lending, said, “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.” He added, “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 crucial benefits for MSMEs and will help contribute 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.”


Kumari 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 2.7 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.”


The Udyam Assist Platform, developed by SIDBI under the MSME ministry’s formalization project, enables online registration of informal micro enterprises with designated agencies and generation of Udyam registration numbers and certificates.


Registration on the Udyam portal is important because it formally recognizes small enterprises as MSMEs, giving them access to subsidies, loans, tax concessions, and procurement contracts. It also provides legal protection against delayed payments and priority in bank credit. Challenges, however, include digital barriers, technical glitches, documentation demands, and low awareness among entrepreneurs. For many informal businesses, especially those outside the GST system, the process of registration remains difficult despite the benefits.