Indian govt partners with Sharma's Paytm to boost growth of manufacturing, fintech startups

The Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, has signed a Memorandum of Understanding (MoU) with Paytm to foster innovation and accelerate the growth of manufacturing and fintech startups in India.

The MoU was signed by Dr. Sumeet Kumar Jarangal, Director, DPIIT, and Vijay Shekhar Sharma, Founder & CEO, Paytm, in the presence of senior officials from both organizations.

Paytm to support startups

As part of this collaboration, Paytm will provide mentorship, infrastructure support, market access, and funding opportunities to startups, helping them scale and innovate.

The initiative aims to equip entrepreneurs with essential resources, enhancing their ability to develop cutting-edge payment and financial technology solutions.

Details of the partnership

According to DPIIT, the partnership aims to support fintech hardware startups through mentorship and innovation guidance, helping them develop and scale payment and financial technology solutions. It also focuses on regulatory and compliance assistance by organizing workshops and providing guidance in collaboration with industry and government bodies.

Additionally, the partnership offers infrastructure and market access support, enabling startups to test, validate, and refine their products while leveraging Paytm’s extensive merchant network.

Leadership comments

Sanjiv, Joint Secretary, DPIIT, emphasized the significance of this collaboration, stating, “This partnership with Paytm marks a crucial step in strengthening India’s startup ecosystem. By leveraging Paytm’s fintech expertise and infrastructure, we aim to support entrepreneurs in overcoming challenges, scaling their ventures, and contributing to India’s emergence as a global innovation hub.”

“Under Prime Minister Narendra Modi’s leadership, this is the best time for startups to launch and scale. Paytm is committed to empowering entrepreneurs through mentorship, financial support, and access to cutting-edge technology. Through this collaboration, we will ensure that startups receive the necessary tools to succeed from inception to growth," said Vijay Shekhar Sharma, Founder & CEO of Paytm.

Infrastructure and market access  

The agreement also emphasizes regulatory and compliance guidance, with plans to organize workshops to simplify policies and ensure smooth operations for startups.

Under its “Paytm for Startups” initiative, Paytm will introduce programs designed especially for fintech hardware manufacturers, including makers of soundbox devices and point-of-sale machines. These programs will help them access investor networks, incubation initiatives and other forms of financial support to scale efficiently.

Beyond fintech hardware, Paytm is also supporting deep-tech ventures in Climate Tech, Web3, Agritech and Mobility through its CSR arm, Paytm Foundation.

This involves nurturing startups that focus on advanced technologies aimed at creating large-scale positive impact.