Digital payments platform PhonePe said on Tuesday it received in-principle approval from the UAE central bank for two licenses covering retail payment services, card schemes, and stored value facilities.
The Walmart-backed fintech firm said the approval follows initial regulatory due diligence and that it still needs final central bank sign-off before it can begin commercial operations in the Gulf state.
"Upon receipt of final regulatory approval, the company looks forward to collaborating with regional banks, licensed payment service providers, and local technology vendors," it said.
Launched in 2016, PhonePe offers a payments application that lets users recharge, pay bills, and send money using India's Unified Payments Interface network.
Earlier this year, the company put its closely watched initial public offering on hold, citing geopolitical uncertainty and volatile global market conditions. The company has said it will revive the listing process once market stability improves.
PhonePe is targeting a valuation of $9 billion to $10.5 billion in the IPO, two sources with direct knowledge of the matter told Reuters in March.
The IPO filing showed Walmart plans to cut its stake in the fintech firm by about 12% through the offering, while existing investors Tiger Global and Microsoft intend to fully exit.
