Bow Wave joins $175m round for Philippines-based GCash

The service is operated by Globe Fintech Innovations – also known as Mynt – the financial technology arm of Globe Telecom, the largest mobile carrier in the Philippines. The round, which comprised multiple tranches and gives Mynt a post-money valuation of nearly $1 billion, also featured unnamed existing investors.

China’s Ant Group and domestic conglomerate Ayala Corporation took minority stakes in Mynt in 2017 as launch partners, AVCJ Research’s records show. Reuters reported that Bow Wave now holds a 14% interest in the company. Globe and Ant Group, which each held 46%, have been diluted to 40%, while Ayala’s stake has fallen from 8% to 6%.

GCash users can buy or borrow mobile phone credit, pay bills, buy items by scanning QR codes, transfer money, shop online, and book movie tickets. The company also connects customers with third parties that provide savings accounts, credit lines, and investment services. These can be managed through the GCash app.

The unit processed transactions worth more than PHP1 trillion ($20.8 billion) in 2020. It claims to have served more than 33 million customers. Globe said in its 2019 annual report that GCash had a network of 75,000 QR merchants, 30,000 cash-in points, and 400 partner billers that accept GCash payments.

“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,” said Martha Sazon, president and CEO of Mynt, in a statement.

Globe, which is controlled by Ayala, had 78.2 million mobile subscribers, 3.4 million broadband customers and 1.3 million landline subscribers as of September 2020. Revenue reached PHP167 billion in 2019. The company launched 917 Ventures as a holding entity for its incubated start-ups, including Mynt. In 2019, Mynt generated revenue of PHP5.8 billion and a net loss of PHP5.6 billion.

Assorted fintech start-ups have emerged in the Philippines offering mobile wallet services. Larger players are also entering the space, in some cases with private equity support. PLDT, another local telecom provider, launched Voyager to operate platforms focused on payments, enterprise services, remittances, lending, and e-commerce rewards. KKR and Tencent Holdings are among the investors.

Most recently, KKR re-upped in Voyager as part of a $120 million growth round. The proceeds were earmarked for PayMaya, which specializes in payment systems for merchants and consumers. The app and wallet are positioned as the country’s only end-to-end digital payments ecosystem enabler.

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• Topics
• Southeast Asia
• Expansion
• Technology
• Financials
• Philippines
• Fintech
• TMT