Philippines-based fintech player Voyager raises $167m

The International Finance Corporation's (IFC) financial institutions growth fund came in as a new investor. The vehicle falls under the purview of IFC Asset Management, an arm of the development finance institution that offers third-party investors access to its emerging markets deal pipeline.

Re-ups came from Voyager's parent company and local telecom provider PLDT, alongside KKR and Tencent Holdings. The investment includes $121 million in fresh capital and $46 million from previously committed funds.

Voyager raised $120 million in April 2020 as part of what was described as an ongoing growth round. PLDT, KKR and Tencent all took part as did the IFC directly and the IFC Emerging Asia Fund, another vehicle operated by the group's asset management unit. This followed a $175 million investment from KKR and Tencent in 2018 and a $40 million commitment from IFC and IFC Emerging Asia Fund around the same time.

Voyager operates platforms across payments, remittances, lending, and marketing, with a focus on financial inclusion. The Philippines is an archipelagic nation where one-third of cities and towns have no banking presence. Moreover, only one in three residents has a formal bank account – and only 3% of those borrow money from banks – while three in five have no insurance or investments.

PayMaya specializes in payment systems. On the consumer side, the mobile app and wallet are used by over 38 million Filipinos to send money to individuals, bank accounts or remittance centers, topping up their accounts via banks, self-service kiosks, and debit and credit cards. It claims 250,000 digital touchpoints nationwide plus a network of 40,000 partner agents.

The registered user base has doubled in the past 18 months and now equates to more than half the adult population of the Philippines. The digital touchpoints amount to seven times the number of ATMs and bank branches in the country.

On the enterprise side, PayMaya is the largest domestic digital payments processor for retailers, food and beverage vendors, gas stations, e-commerce merchants, and government agencies. In addition to shopping online – there is now an in-app PayMaya mall – it is possible to book flights and tickets for movies and events, buy online games, pay bills, and stream music.

The new capital will go towards deeper penetration of the unbanked and underserved populations and micro, small and medium-sized enterprises (MSMEs), in part through the introduction of new products such as credit, insurance, savings, and investments. These will be provided through a digital bank. The company has already applied for the relevant licenses.

Since the start of the year, PayMaya has started making loans to MSMEs through its dedicated lending arm and offering health and device protection via insurance partners.

"We have seen a quantum leap for digital payments adoption in the Philippines over the past year, and PayMaya has served as the nexus connecting consumers and enterprises with enriching digital finance experiences. This investment supports the unique value we bring and gives us a natural head start with the target market for the digital banking service," said Orlando Vea, CEO and founder of Voyager and PayMaya, in a statement.

PLDT is not the only telecom incumbent pushing into online financial services. Globe Telecom, the largest mobile carrier in the country, runs mobile wallet GCash under its Globe Fintech Innovations unit, also known as Mynt. Services are broadly similar to those offered by Voyager.

Earlier this year, Mynt raised $175 million at a post-money valuation of nearly $1 billion. Investors include Bow Wave Capital Management, Ant Group - the financial services affiliate of China's Alibaba Group - and domestic conglomerate Ayala Corporation.

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• Topics
• Southeast Asia
• Financials
• Technology
• Expansion
• Philippines
• Fintech
• KKR
• IFC
• Tencent
• Financial Services