GCash value zooms to P291B via infusion

With a new capital infusion, Globe Fintech Innovations Inc. (Mynt), the parent company of GCash, has pushed the electronic wallet’s total valuation to skyrocket to $5 billion, or roughly P291 billion, making it at par with the biggest financial institutions in the country.

Mynt secured fresh investments from Ayala Corp. and Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank.

Mynt confirmed on Friday that Ayala, through AC Ventures Holdings Inc. (ACV), will hike its investments in Mynt by acquiring an additional 8 percent stake in the company.  

MUFG, through its consolidated subsidiary, MUFG Bank Ltd., on the other hand,  will buy an 8 percent stake after entering into binding agreements to invest in Mynt.

“We are thrilled to welcome MUFG as a new strategic partner. With their global expertise and reach within the financial inclusion space, they will be instrumental in further expanding GCash’s social impact, especially to the underserved,” Mynt president and CEO Martha Sazon said.

“Alongside this, Ayala’s unmatched commitment to Philippine economic growth and development, and its expertise in multiple industries will accelerate GCash’s mission,” she added.

According to Mynt, its valuation of $5 billion, more than double its $2 billion valuation from the last funding round in 2021. As of the end of last year, Mynt recorded P6.7 billion of net income.

Huge digital economy potential

Yasushi Itagaki, senior managing corporate executive and head of the Global Commercial Banking Business Group at MUFG, the strategic investments in GCash will expand the company’s “contribution to the ongoing development of the Philippines’ digital economy and financial inclusion.”

Meanwhile, Ayala president Cezar Consing said: “We like the long-term growth prospects of Mynt. It is a clear leader in a fast-growing space and a key contributor to the Philippines’ economic growth. Mynt is valuable because it enables underserved Filipino consumer and business segments to thrive.”

The proposed investment is subject to the execution of definitive transaction documents and the satisfaction of customary closing conditions. 

Upon completion, MUFG will join Mynt’s shareholder base and Ayala will increase its stake in Mynt. Morgan Stanley acted as exclusive financial advisor to Mynt.

The resurgence of mobile wallets has significantly improved people’s lives by providing convenient, secure, and accessible means of conducting financial transactions, reducing reliance on cash, and promoting financial inclusion. GCash has been at the forefront of this revolution. 

Micro, Small and Medium Enterprises, for instance, make up 99.5 percent of total business enterprises nationwide. However, starting capital poses a significant obstacle with 57 percent of small businesses relying on informal loans, as reported by the Bangko Sentral ng Pilipinas. 

To address this challenge, GCash utilizes its comprehensive Know-Your-Customer and lending trust rating systems to offer quick and accessible loans to aspiring entrepreneurs.