GCash operator nears ‘unicorn’ status with almost $1-B valuation

Fintech startup Globe Fintech Innovations Inc. (Mynt), the operator of mobile wallet GCash, is nearing “unicorn” status after securing a fresh capital infusion, making its valuation close to $1 billion.

In a statement on Friday, Mynt’s parent firm Globe Telecom said the GCash operator attracted fresh capital investment from ASP Philippines LP, a limited partnership fund managed by investment firm Bow Wave Capital Management “to further spur the growth of financial inclusion and the digitization of payments and financial services in the Philippines.”

With this, Mynt raised over $175 million in fresh capital from Bow Wave and its existing shareholders in multiple tranches.

Post-transaction, the GCash operator's valuation is now close to $1 billion, according to Globe.

A "unicorn" is a private startup with a valuation of over $1 billion.

“This investment from Bow Wave is a validation of both what we have accomplished as well as the potential of GCash in unlocking digital services in the Philippines,” said Martha Sazon, president and chief executive officer of Mynt.

“The pandemic has acted as a catalyst in highlighting the importance of digital finance in society today and with this investment from Bow Wave, we look forward to further living out our vision of finance for all, enabling democratized access to payment and financial services to every Filipino,” Sazon said.

Bow Wave is a close-ended private equity fund with a mandate to invest globally in online and mobile payment ecosystem companies, particularly in strategic partners and investments of the Ant Financial and Alibaba Group.

Meanwhile, Mynt is a startup partnership between Globe, Ayala Corp., and Chinese billionaire Jack Ma’s Ant Financial.

Bow Wave’s investment in Mynt, its first in the Philippines, will translate to a minority equity interest in the Mynt, according to Globe.

Other terms of the investment remain confidential.

UBS AG acted as a financial advisor for Mynt for the transaction.

Amid the COVID-19-related lockdowns last year, GCash recorded a gross transaction value of over P1 trillion in 2020, spurred by services like online payments, bank cash-in, and money transfers of over 33 million users.

“We have made significant gains in 2020 that further cemented our status as the leading Finance app in the country. We are further encouraged by the fact that Mynt’s momentum has continued, even as the country moved out of quarantine restrictions, suggesting a fundamental shift in our customers’ behavior towards a cashless lifestyle. We are confident in Mynt’s future prospects as a unicorn in the Philippines,” said Ernest Cu, Globe president and CEO and chairman of the board of Mynt. — DVM, GMA News