PhonePe launches digital-first Udyam assist registration to support micro enterprises

PhonePe has taken a significant step in formalising India’s informal micro-enterprise sector by launching a digital-first Udyam registration service through its Udyam Assist Platform (UAP).

Unlike the conventional process of obtaining an Udyam certificate, which is often a protracted and paper-based process, PhonePe’s solution offers an end-to-end digital experience for micro merchants. This development makes PhonePe the first fintech company in India to provide direct Udyam registration services to its merchants.

The announcement was made at an event on Wednesday in Delhi, attended by Union Minister for Micro, Small and Medium Enterprises, Jitan Ram Manjhi, and Y.M. Kumari, Chief General Manager of the Small Industries Development Bank of India (SIDBI).

What this really means is that informal micro enterprises (IMEs), which often operate without formal recognition, can now access government schemes, tax benefits, business bank accounts, and a broader range of financial services simply through a digital interface. The initiative aims to integrate small businesses into the formal economy, thereby supporting financial inclusion on a larger scale.

“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. We are deeply honoured to be one of the first institutions to deliver a complete digital-first integration with the Udyam Assist Platform,” said Hemant Gala, CEO, PhonePe Lending.

PhonePe also signed a Memorandum of Understanding (MoU) with SIDBI. This partnership is designed to enable credit access for micro merchants through seamless digital lending solutions integrated into the UAP, according to the company.

Gala added that the 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.”

Y.M. Kumari, chief general manager, Small Industries Development Bank of India (SIDBI), highlighted the scale of the platform’s previous achievements. “The platform enabled issuance of Udyam Assist Certificates to more than 2.75 crore small businesses over a period of more than two years. Seamless digital integration with the designated agencies marks another important positive step in the formalisation journey.”

The Udyam Assist Platform itself is part of the Ministry of MSME’s broader Formalisation Project. Developed and implemented by SIDBI, it allows online registration of IMEs, enabling them to receive Udyam Registration Numbers and Udyam Assist Certificates through a streamlined digital process.

As of August 2025, PhonePe claims to have over 65 crore registered users and a digital payments network covering more than 4.5 crore merchants. The platform processes over 36 crore transactions daily, with an annualised total payment value exceeding ₹150 lakh crore.