By Ishita Malakar
PhonePe announced on Wednesday (September 10, 2025) that it will collaborate with the Ministry of Micro, Small and Medium Enterprises (MSMEs) and the Small Industries Development Bank of India (SIDBI) to onboard more small merchants onto the Udyam platform, enabling them to access credit opportunities and benefit from various government schemes.
The government launched the Udyam platform to help more MSMEs transition into the formal sector, and SIDBI has rolled out an Assist platform to make it easier for businesses to obtain their Udyam number. This Assist platform is now set to integrate directly with PhonePe, giving merchants access to government schemes, tax benefits, business bank accounts, and a range of digital payment options and financial services. In the last two years, the Assist platform has successfully issued Udyam Assist Certificates to over 2.75 crore small businesses. This initiative aims to accelerate the formalization of informal micro-enterprises, making it easier for them to access credit and enhancing their contribution to the mainstream economy.
During the announcement, MSME Minister Jitan Ram Manjhi pointed out that almost 70 percent of Indians still struggle to access formal credit. He called this gap a stain on the nation’s financial system and emphasized that efforts like this integration are vital for eliminating that issue, boosting financial inclusion, and ensuring that small businesses can thrive in the formal economy.
Sameer Nigam, Co-Founder and CEO of PhonePe, credited SIDBI and the Government of India for their pivotal role in making the Udyam Assist platform a reality. He noted that SIDBI has played a crucial part in enabling PhonePe to extend KYC services to micro-merchants, ensuring trust and compliance at scale. PhonePe currently serves over 4.5 crore merchants across the country, and with this partnership, the company expects its addressable market to expand nearly threefold, unlocking significant opportunities for financial inclusion and business growth.
PhonePe offers a user-friendly, all-in-one digital solution that does more than just help with registration; it brings to life the goal of empowering small and micro businesses through a smooth digital experience.