Fintech major PhonePe and Small Industries Development Bank of India (SIDBI) have entered into a Memorandum of Understanding (MoU) to provide micro enterprises and traders with the digital-first Udyam Assist registration that gives them access to the Udyam Assist Platform (UAP).
The collaboration aims to formalise Informal Micro Enterprises (IMEs) across India by providing them with UAP which enables them to access benefits including government schemes, credit facilities, and the broader digital payments ecosystem.
The Udyam Assist Platform (UAP), launched in January 2023 by SIDBI under the Ministry of MSME's Formalisation Project, facilitates online registration for IMEs.
Also Read: MSMEs embracing digital payments
"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," said PhonePe Pending CEO, Hemant Gala.
Merchants will soon be able to avail the facility on the PhonePe Business app, he added.
Udyam Assist Platform has emerged as a major driver for the formalisation of non-GST registered Informal Micro Enterprises, YM Kumari, Chief General Manager, SIDBI, said.
The platform enabled issue of Udyam Assist Certificates to more than 2.75 crore small businesses over a period of over 2 years.
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