GCash valuation rises to $5B after Japan's MUFG buy-in, Ayala boost

Mobile wallet GCash, operated by Globe Fintech Innovations Inc. (Mynt), has more than doubled its valuation after it secured fresh investments from Ayala Corporation and Japanese lender Mitsubishi UFJ Financial Group (MUFG).

In a statement, GCash said Ayala, through its wholly owned unit AC Ventures Holdings Inc. (ACV), is increasing its stakes in Mynt by an additional 8%.

At the same time, MUFG’s consolidated subsidiary MUFG Bank Ltd. is buying into the fintech startup through the acquisition of an 8% stake in Mynt after it entered into binding agreements to invest in the company.

GCash said the fresh round of fund infusion pushed up its valuation to more than double at $5 billion, from a valuation of $2 billion in its last funding round in 2021. 

As of end-2023, the fintech startup recorded P6.7 billion of net income.

"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," said Martha Sazon, GCash president and CEO.

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

Yasushi Itagaki, senior managing corporate executive and head of Global Commercial Banking Business Group at MUFG said, GCash "is an indispensable infrastructure for everyday life of Filipinos and we are delighted to join Mynt as a strategic investor to support the growth of the company."

"With our investment, we are excited to expand our contribution to the ongoing development of the Philippines' digital economy and financial inclusion,” said Itagaki.

Ayala Corp. president and CEO Cezar Consing, for his part, said "Mynt is valuable because it enables underserved Filipino consumer and business segments to thrive."

GCash said the fresh investments would be subjected 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, it said.

Founded in 2015, GCash (Mynt) was a financial technology startup established by a partnership with Globe Telecom, Ayala Corp., Chinese conglomerate Alibaba Group affiliate Ant Financial. —KBK, GMA Integrated News