PhonePe Partners with SIDBI to Propel Digital Empowerment for Micro Enterprises

In a significant move, fintech giant PhonePe has teamed up with the Small Industries Development Bank of India (SIDBI) to launch a comprehensive digital solution aimed at empowering micro enterprises and merchants across India. This strategic partnership involves the use of the Udyam Assist Platform (UAP) to facilitate the formalization of Informal Micro Enterprises (IMEs).

Under the memorandum of understanding, this collaboration opens doors for micro enterprises to tap into government schemes, access credit facilities, and integrate into the digital payments landscape seamlessly. In a ceremony that marked the signing, Union Minister for Micro, Small and Medium Enterprises, Jitan Ram Manjhi, witnessed the agreement.

PhonePe's CEO, Hemant Gala, highlighted the transformative potential of this partnership in contributing to India's economic vision by making digital solutions user-friendly and efficient. The PhonePe Business app will soon roll out this facilitated service to merchants. Since its January 2023 launch under the Ministry of MSME's Formalization Project, UAP has issued over 2.75 crore Udyam Assist Certificates, significantly aiding the formalization of non-GST registered IMEs.

(With inputs from agencies.)