Govt signs MoU with Paytm for mentorship, market access, funding to startups in India

The Department for Promotion of Industry and Internal Trade (DPIIT) has signed a memorandum of understanding (MoU) with digital payments firm Paytm to foster innovation and accelerate the growth of manufacturing and fintech startups in India, the ministry of commerce and industry said in a statement on Wednesday.

Under the partnership, Paytm will extend mentorship, infrastructure support, market access, and funding opportunities to startups. The partnership aims to support fintech hardware startups through mentorship and innovation guidance, helping them develop and scale payment and financial technology solutions, the official release said.

It will also provide regulatory and compliance assistance through workshops and guidance in collaboration with industry and government bodies.

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

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

“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,” DPIIT Joint Secretary Sanjiv said.

As part of its Paytm for Startups initiative, the company will launch dedicated programs to support fintech hardware manufacturers, including Soundbox and PoS/EDC device makers, in scaling efficiently. The initiatives will include mentorship programs, access to funding through investor connections and incubation programs, regulatory guidance with industry-focused workshops, and periodic tracking and impact assessments.

Paytm Foundation, through its CSR arm, will support deep-tech startups in Climate Tech, Web3, Agritech, and Mobility.

Vijay Shekhar Sharma said, “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.