PhonePe has received in-principle approval from the UAE central bank for two licences covering retail payment services, card schemes and stored value facilities, marking a step toward the Indian fintech company’s entry into the Gulf market. The Walmart-backed company said the approval followed initial regulatory due diligence, but it still requires final approval from the UAE central bank before beginning commercial operations. Once final clearance is secured, PhonePe said it plans to work with regional banks, licensed payment service providers and local technology vendors. Launched in 2016, PhonePe operates a digital payments platform that enables users to recharge, pay bills and transfer money through India’s Unified Payments Interface (UPI) network. The company had earlier put its planned initial public offering on hold, citing geopolitical uncertainty and volatile global market conditions, and has said it will revive the listing process when market conditions stabilise. PhonePe is targeting a valuation of $9 billion to $10.5 billion through the IPO, according to sources cited by Reuters. Its IPO filing also showed that Walmart plans to reduce its stake by about 12% through the offering, while existing investors Tiger Global and Microsoft intend to fully exit.
