Daijiworld Media Network - New Delhi
New Delhi, Sep 22: Walmart-backed digital payments company PhonePe on Tuesday said it has received in-principle approval from the Central Bank of the UAE for two licences covering retail payment services, card schemes and stored value facilities.
The company said the approval followed initial regulatory due diligence by the UAE central bank. PhonePe will, however, require final regulatory approval before it can begin commercial operations in the Gulf country.
“Upon receipt of final regulatory approval, the company looks forward to collaborating with regional banks, licensed payment service providers, and local technology vendors,” the company said.
The approval marks PhonePe's move towards expanding its payments business into the UAE, where it plans to work with local financial and technology partners.
Founded in 2016, PhonePe operates a digital payments application in India that allows users to make payments, recharge mobile connections, pay utility bills and transfer money through the Unified Payments Interface (UPI) network.
The company is backed by US retail giant Walmart and has grown into one of India's major digital payments platforms.
PhonePe had earlier this year put its closely watched initial public offering on hold, citing geopolitical uncertainty and volatile global market conditions. The company has indicated that it would revive the listing process once market conditions become more stable.
PhonePe is targeting a valuation of between $9 billion and $10.5 billion through the proposed IPO, according to two sources with direct knowledge of the matter cited by Reuters in March.
The IPO filing showed that Walmart plans to reduce its stake in PhonePe by around 12% through the proposed offering, while existing investors Tiger Global and Microsoft are planning to exit their investments completely.
The UAE regulatory approval comes as PhonePe seeks to expand its presence beyond India and build partnerships within the Gulf region. The company said it would proceed with commercial operations in the UAE only after securing the central bank's final approval.