financial technology

GCash operator now worth almost $1 billion after Bow Wave investment

Ralf Rivas
Mynt, the operator of GCash, inches closer to being a unicorn after raising $175 million in fresh capital

The operator of mobile wallet GCash is now poised to reach unicorn status after securing fresh capital.

Globe Fintech Innovations (Mynt) raised $175 million (P8.4 billion) from ASP Philippines LP, a limited partnership fund managed by investment firm Bow Wave Capital Management, and existing shareholders.

The latest injection of capital, which came in multiple tranches, comes as the coronavirus pandemic accelerated the use of digital payments in the country.

Bow Wave is a close-ended private equity fund which invests in online and mobile payment ecosystem companies, particularly in strategic partners and investments of Chinese billionaire Jack Ma’s Ant Financial and Alibaba Group

Mynt is owned by Ant Financial, Ayala through AC Ventures, and Globe Capital.

Bow Wave’s investment in Mynt is the first in the Philippines and will translate to a minority equity interest in Mynt. No other details were given as to how it would impact the current shareholder structure.

“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, Mynt president and chief executive officer. 

GCash has recorded a whopping P1 trillion worth of gross transaction value in 2020, spurred by online payments and bank transfers of over 33 million Filipinos.

GCash is the most downloaded finance app with the most active users among Filipino iOS and Android owners for 2020, according to mobile data and analytics firm App Annie. 

With the growth and fresh funding, Mynt chairman and Globe president and chief executive officer Ernest Cu said that Mynt is poised to be a unicorn (a startup valued at $1 billion) in the Philippines.

“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,” Cu said. – Rappler.com

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.