VC-backed Ayannah merges with India's ECAPS
Philippines financial services player Ayannah, which is backed by Golden Gate Ventures, has merged with India’s Electronic Cash and Payment Solutions (ECAPS).
Following the merger, the companies will be part of a new entity called Ayannah Global. The CEOs of both firms will retain oversight for their respective jurisdictions. Financial terms were not disclosed.
Founded in 2010, Ayannah was initially established to help overseas Filipinos purchase various online products back home. It has also worked on improving domestic remittance outcomes by making it easier for Filipinos to buy stored value cards, micro-insurance products, and access telemedicine. The company says it primarily seeks to service unbanked individuals.
ECAPS, formerly known as Equity Capital Advisors, was set up in 2013 to help migrant workers in India with similar needs. It also offers travel-related ticketing solutions. The company claims to have facilitated more than 12 million transactions to date. Both companies use a network of distributors and retailers in India and the Philippines to sell their products.
“We are happy to announce the launch of Ayannah Global ... to create a pan-Asian fintech 'elephant' which aims to provide affordable and accessible digital financial services to 500 million emerging middle-class customers in the large and fast-growing economies of Asia,” stated Singapore-based Ayannah Global co-CEO Mikko Perez, in a LinkedIn post.
Apart from Golden Gate, VC investors in the companies include 500 Startups, Wavemaker Partners, Beenox, Spiral Ventures, Prive Financial, and Strive. They have raised $18 million in committed capital and are targeting a further $30 million in a potential Series B round.
The merged entity is expected to have a customer base of 10 million individuals. Ayannah Global plans to expand its operations and serve a similar profile of customers in Indonesia and Vietnam. In the long-term, it plans to offer savings and investment products as well. In particular, Ayannah Global wants to introduce a product similar to Kaya - an online marketplace connecting individuals with banks, lending firms, and insurers - in India, Indonesia and Vietnam.
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